EU Restricts Russian Oil Imports, But Natural Gas Remains Exempt
France Emerges as Top Importer of Russian Gas
The European Union (EU) has taken a significant step in its attempt to reduce its reliance on Russian energy sources by restricting imports of Russian oil. However, the bloc has opted to maintain the flow of natural gas from Russia, with France emerging as the largest importer of the fuel.
LNG Sanctions Impact Russian Exports
Under the EU's latest sanctions package, ports in the bloc will be prohibited from allowing large tankers from Russia to unload their cargo into smaller ships bound for third countries. This move targets the transshipment of Russian liquefied natural gas (LNG) to Asia, potentially disrupting Russia's exports and revenue streams.
Arctic LNG 2's Strategic Importance
Despite the sanctions, Arctic LNG 2, a major Russian gas project located in the Arctic, is expected to maintain its exports to both Europe and Asia. Its proximity to both markets allows it to be a key player in the global LNG landscape.
Russia's LNG Share in EU Imports
Russian LNG accounted for 216 million cubic meters (mn), or 16%, of the EU's total LNG imports of 1,335mn cubic meters in 2021. This equates to 82 billion cubic meters of natural gas. However, approximately 21% of the Russian LNG currently received by EU ports would not be affected by the bloc's sanctions due to existing long-term contracts or geographic exemptions.
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