An EU draft law to completely ban Russian gas imports
Europe’s imports of liquefied natural gas from Russia fell slightly last year after a sharp rise in 2022, underscoring the EU’s diversified role in energy.
Policymakers in Brussels are currently working on a draft law that would allow member states to completely ban Russian gas, whether pipeline or liquefied natural gas.
This move comes about two years after the start of the Russian-Ukrainian war, which affected European dependence on Russian energy imports.
Some traders and analysts believe that this law may contribute to a gradual reduction in energy imports without a significant impact on the European gas market.
Although LNG from the United States has filled the gap resulting from the reduction in Russian gas imports, it has simultaneously led to an increase in gas imports shipped from Russia.
According to data from S&P Global Commodity Insights, LNG made up 13% of total EU supplies last year.
In 2022, EU imports of Russian LNG stabilized at 20.5 billion cubic meters, a 30% increase compared to 2021 levels.
The EU now sees the possibility of giving member states the power to suspend gas imports from Russia and Belarus.
Under the bill, member states will be able to block companies from Russia and Belarus from acquiring space in pipelines and LNG terminals.
This proposal could also provide a basis for EU energy companies to exit their contracts with Russian gas providers without paying huge compensation.
