Gasum, a key gas supplier to the Nordic region, has announced that it will stop purchasing and importing Russian LNG from July. The move aligns with the new package of sanctions imposed by the European Union against Russia, targeting the country’s gas exports for the first time. The recent adoption by EU member states of a 14th sanctions package marks a significant step in the pressure on Russia. Among these sanctions, a clause will prohibit the purchase or import of Russian LNG via European Union terminals not connected to the EU gas network. This measure, added at the request of Sweden and Finland, allows these countries to terminate certain LNG contracts. Unlike other sanctions on LNG which will only come into force in 2024, this clause specific to Finland and Sweden will be effective from July 26.
Compliance with Sanctions and Contractual Consequences
Gasum clarified that the sanctions imposed by the EU do not allow him to terminate his contract with Gazprom Export. However, they are a major force regarding the purchase or import of Russian LNG to off-grid terminals. Gasum’s long-term contract with Gazprom Export, concluded before 2022, is a take-or-pay agreement, requiring Gasum to pay for the contracted gas whether it is used or not. Without these sanctions, Gasum would have lacked the legal grounds to stop his purchases. Already, the majority of the LNG that Gasum sources comes from countries other than Russia. The company said it will replace Russian volumes with supplies from other sources.
Impact et Perspectives Futures
Terminals operated by Gasum in Sweden and Finland are all affected by the latest sanctions. The company notably buys LNG from the Kryogaz-Vysotsk plant, controlled by the Russian firm Novatek. This decision by Gasum to cease imports of Russian LNG represents a significant step in the EU’s collective effort to diversify its energy supply sources and reduce its dependence on Russian gas. As Europe continues to strengthen its measures against Russia, the energy industry must adapt quickly to meet growing needs for clean, secure energy.
The EU’s decision to sanction Russian gas exports could prompt other countries and companies to follow Gasum’s lead. By diversifying its sources of supply, Gasum not only complies with European regulations, but also ensures the continuity and energy security of the Nordic region. The evolution of sanctions and their impact on the European energy market will need to be closely monitored. This could catalyze increased innovation and investment in alternative and renewable energy solutions, strengthening Europe’s energy resilience in the long term.
