EU & UK Sanctions on Russian LNG

EU Remains Top Russian LNG Buyer as UK Imposes New Sanctions

The EU continues to be the largest buyer of Russian LNG, purchasing half of Russia's total exports. Meanwhile, the European Commission targets a complete phase-out of Russian gas by 2027. In response to the ongoing conflict, the UK has imposed sanctions on five firms supporting the Russian financial services sector, along with Chinese ports and trading entities.

The EU's reliance on Russian LNG remains significant, with the Beihai LNG terminal in China serving as a key destination for Russian Arctic LNG 2 cargoes. LNG revenues surged by 27% to €40.5m per day in September, driven by a 29% increase in exported volumes. China, another major buyer, saw its imports of Russia-supplied LNG rise by 3.3% to 8.3 million tonnes in 2021, representing around a fifth of Russia's total LNG exports.

The UK's sanctions encompass seven LNG carriers and 45 oil carriers, along with four Shandong firms and National Pipeline Group Beihai LNG Co. in China. The prohibited persons under UK financial sanctions include the Central Bank of Russia and the National Wealth Fund, as well as entities controlled by them.

Despite the EU's commitment to phasing out Russian gas, the bloc remains heavily dependent on Russian LNG. The UK's sanctions, targeting firms supporting the Russian financial services sector and Chinese entities involved in LNG imports, aim to put further pressure on Russia. The impact of these measures on Russia's energy exports and the global LNG market remains to be seen.