EU imposes first sanctions on Russian gas exports

On June 24, the European Union (EU) adopted the 14th package of sanctions against Russia, marking the first time the bloc has applied measures to restrict gas exports from the "Land of Birch Trees."

The new decision will add 116 more individuals and entities to the sanctions list, bringing the total to more than 2,200.

In particular, the new restrictions on Russian gas are aimed at reducing revenue from the country's liquefied natural gas (LNG) exports.

The EU will ban Russian LNG transportation services on the territory of EU countries for the purpose of carrying out transshipment operations to third countries.

The EU estimates that around 4-6 billion cubic metres of Russian LNG was shipped to third countries via EU ports last year. In addition, there will be a provision allowing Sweden and Finland to cancel some LNG contracts.

The new sanctions will come into effect after a nine-month transition period. They also ban new investment and service provision to complete LNG projects under construction in Russia.

Meanwhile, some Central European countries can still receive gas via pipelines from Russia to Ukraine. The EU has banned imports of Russian oil in 2022 with limited exemptions.

The EU also aims to curb cheating by introducing more penalties at member state level for those found to be breaking the rules.

The European Commission, the EU's executive body, also proposed expanding the so-called "No Russia Clause" adopted in the previous sanctions package.

The measure would have required EU companies’ subsidiaries in third countries to sign contracts prohibiting the re-export of their goods to Russia for high-priority goods, including those with dual military use. However, the proposal was rejected at Germany’s request.