The EU is preparing sanctions against Russian gas: Bloomberg reveals details

Darina GertsevaNews
EU prepares new sanctions against Russia
The EU is preparing new sanctions against Russia. Source: Created with the help of AI

The European Union (EU) is considering imposing sanctions on Russian liquefied natural gas (LNG), which could affect the transportation of Arctic fuel, which accounts for about 13% of Russian LNG imports to the EU. These measures indicate the growing tension between Europe and Russia and the EU's intention to reduce its dependence on Russian energy resources.

Bloomberg writes about this. The news of the EU's plans to impose sanctions on Russian LNG, as reported by the agency, has important implications for the energy market and the geopolitical situation in the region.

These sanctions appear to be a reaction to recent developments designed to limit Russia's gas export revenues without directly affecting European energy security. As part of the 14th package of sanctions, the EU is considering a ban on re-exports of Russian LNG, which is a strategic step in the context of their policy towards Russia.

This demonstrates Europe's growing confidence in taking concrete measures against Russian energy resources in response to its destabilizing behavior. Refusal to transship LNG in EU ports could seriously affect the Russian producer Novatek, which specializes in Arctic LNG. This could lead to supply disruptions, increased transportation costs, and reduced profits for the company.

It will also create challenges for logistics and transportation, especially for specialized vessels that transport Arctic fuel. If a ban on re-exports is imposed, Europe may turn to alternative sources of gas supply or develop its production capacity to reduce its dependence on Russian LNG. However, this may require significant investment and time.

A re-export ban could also affect Asian customers that depend on Russian L NG. They could face reduced volumes or higher gas prices due to increased transportation costs.

European companies, including the German state-owned Securing Energy for Europe GmbH, Shell Plc, and TotalEnergies SE, use the ports of Zeebrugge and Montuar to transship cargo from Yamal under their contracts that run until 2038 and 2041. This may open the possibility of declaring force majeure if transshipment is banned.

As OBOZ.UA reported earlier, the European Union is going to decide in the coming weeks to confiscate Russia's frozen assets in favor of Ukraine. However, in fact, it is not about confiscating Russian money directly, or even about confiscating income from it.

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