EU ditches plans to prohibit Russian LNG

(MENAFN) The European Union has decided not to include a ban on Russian liquefied natural gas (LNG) in its upcoming 17th sanctions package against Moscow, Reuters reported on Wednesday. The move was reportedly influenced by internal disagreements, concerns over energy supply security, and fears that a ban might weaken the EU's negotiating position with the United States.

An unnamed EU official told Reuters that sanctioning Russian LNG now could remove a crucial bargaining tool in the bloc’s trade talks with Washington. The European Commission is aiming to leverage energy imports, including LNG, in hopes of convincing the U.S. to drop the 25% tariffs on EU steel and aluminum reinstated by President Donald Trump earlier this year. These tariffs are currently under a 90-day suspension to allow room for negotiations.

Trump has consistently pushed the EU to purchase more American LNG. Some European officials see the ongoing talks as a chance to trade LNG purchases for tariff relief.

The proposal to ban Russian LNG had also been considered earlier this year during negotiations for the 16th sanctions package but was ultimately dropped due to resistance from member states. Major importers like France, Spain, and Belgium account for 85% of the EU’s Russian LNG imports, according to the Institute for Energy Economics and Financial Analysis (IEEFA).

Despite a sharp decline in Russian pipeline gas since 2022, imports of Russian LNG have risen. In 2024, Russia made up 17.5% of the EU’s LNG supply, trailing only the U.S., which provided 45.3%.

The European Commission is currently preparing a plan to phase out Russian energy completely by 2027, with the proposal expected in May. Meanwhile, Russia continues to expand its LNG output. Deputy Energy Minister Pavel Sorokin said in February that Moscow is boosting LNG exports, especially to markets like India, offering competitive pricing despite Western sanctions.

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