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EU slaps fresh curbs on Russia gas shipments – ET Infra



EU slaps fresh curbs on Russia gas shipments – ET Infra

BRUSSELS: European Union countries adopted a 14th package of sanctions on Russia that aims to close some loopholes and hits Russia’s gas exports for the first time, foreign ministers of the 27-nation bloc said on Monday.

Western powers imposed sweeping sanctions on Moscow after Russia launched a full-scale invasion of Ukraine in February 2022, which have been progressively ramped up since.

The new restrictions on gas aim to reduce Russia’s revenues from liquefied natural gas (LNG) exports by banning trans-shipments off EU ports and a clause allowing Sweden and Finland to cancel some LNG contracts. The measures stop short of an EU ban on LNG imports, which have risen since the start of the war.

The sanctions will take effect after a nine-month transition period. The package also prohibits new investments and services to complete LNG projects under construction in Russia. Gas market experts say the measure will likely have little impact as Europe still buys Russian gas itself and trans-shipments via EU ports to Asia represent only around 10% of total Russian LNG exports.

An EU official said the estimated hit on Russia would be in the millions of euros rather than billions.

Some central European countries still receive pipeline gas from Russia via Ukraine. The EU banned Russian oil imports in 2022 with some limited exemptions.

  • Published On Jun 25, 2024 at 11:44 AM IST

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