Tags: European Union, gas, Russian, Russia, Ukraine, G7, sanctions,
BRUSSELS, June 20 (Reuters) – European Union countries have agreed on a 14th package of sanctions against Russia over its war in Ukraine, diplomats said on Thursday, including for the first time restrictions on the Russian gas.
The package bans re-exports of Russian liquefied natural gas (LNG) in EU waters but does not go so far as to ban imports as the bloc did in 2022 for Russian oil transported by sea. EU still import gas by pipeline from Russia via Ukraine.
However, gas market experts say the measure will have little impact because gas transshipments through EU ports to Asia only account for around 10% of total Russian LNG exports.
The package also sanctions three Russian LNG projects and includes a clause designed to allow Sweden and Finland to cancel Russian LNG contracts, diplomats said.
Belgium, which holds the rotating EU presidency until July 1, said on social platform
“This impactful package will further deprive Russia of access to key technologies. It will deprive Russia of new energy revenues. And will tackle (President Vladimir) Putin’s shadow fleet and shadow banking network abroad,” European Commission President Ursula von der Leyen said on X.
Countries debated the new measures for more than a month and ultimately toned down one of the Commission’s proposals, aimed at preventing even more circumvention, at Germany’s request.
The abandoned measure would have required subsidiaries of EU companies in third countries to contractually prohibit re-exports of their goods to Russia. The EU is keen to stop the flow of dual-use technologies such as washing machine chips that could be used by Russia for military purposes.
An EU diplomat said Germany had requested an impact assessment, and the measure could be included at a later date.
The package also tightens measures against the ghost fleet transporting Russian oil outside the price cap on Russian crude set by the Group of Seven (G7). EU countries added oil tankers to the list of sanctioned entities as well as at least two Russian ships carrying military equipment from North Korea, diplomats said.
Moscow and Pyongyang have grown closer since Russia’s full-scale invasion of Ukraine in February 2022. This week, the two countries agreed to provide immediate military assistance if either faces aggression army, in a pact reached after Russian President Vladimir Putin visited Pyongyang.
A total of 47 new entities and 69 individuals were added to the EU sanctions list, bringing the total to 2,200. The package is expected to be formally approved when EU foreign ministers meet on Monday, they said. diplomats said.
Reuters
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