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Imports

EU Fails to Close Loophole Allowing Russian LNG Imports Amid Sanctions

Strategic Insights

— 2 min read

The EU's attempt to block Russian liquefied natural gas (LNG) through the 14th package of sanctions has been unsuccessful, as the Netherlands Government reports a significant increase in imports of Russian LNG through the port of Rotterdam in the third quarter of 2024. Despite the ban on transhipment of Russian LNG to non-EU countries, the EU is still receiving residual flows due to existing agreements. This loophole in the sanctions package has rendered Member States unable to restrict Russian LNG imports into the EU.

Key Takeaways:

  • The volume of imports of Russian LNG through the port of Rotterdam in the Netherlands has doubled in the third quarter of 2024 compared to mid-2022.
  • The Netherlands Government attributes the increase to the ban on transhipment of Russian LNG to non-EU countries, resulting in residual flows being imported into the EU.
  • The sanctions package has a loophole that allows importing Russian LNG on the basis of existing agreements, which Member States cannot act against.
  • The Netherlands Government urges the Commission to close this loophole as soon as possible.
  • The EU Commission has not yet taken additional measures to restrict Russian LNG imports on the basis of existing agreements.
  • Bill Browder, a well-known critic of Putin, has called for stronger action against Russian energy imports in the EU.
  • The EU's energy commissioner, Kadri Simson, has stated that the EU aims to reduce its dependence on Russian energy imports.
  • The EU's sanctions package has been criticized for being too weak and ineffective in blocking Russian energy exports.

Statistics:

  • The volume of imports of Russian LNG through the port of Rotterdam in the Netherlands has doubled in the third quarter of 2024 compared to mid-2022 (Source: Netherlands Government).
  • 14th package of sanctions against Russia includes a ban on transhipment of Russian LNG to non-EU countries (Source: European Union).
  • Existing agreements allow for importing Russian LNG on the basis of existing agreements, which Member States cannot act against (Source: Netherlands Government).
  • The EU has been importing residual flows of Russian LNG due to the sanctions package's loophole (Source: European Union).
  • Russia is the second-largest supplier of LNG to the EU, after the United States (Source: European Commission).

Sources:

  • European Parliament Question for written answer E-001861/2024 to the Commission Rule 144 Tom Berendsen (PPE)
  • Netherlands Government
  • European Union
  • Bill Browder's statement on Twitter
  • European Commission press release on EU's energy strategy
  • Source 2: https://open.overheid.nl/documenten/68bcd45b-9c93-4eda-9277-232a5cc25bd0/file, p. 3.

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