The European Union has begun to take action to restrict the import of Russian liquefied natural gas (LNG) on the spot market by banning the purchase of this resource through short-term contracts. The ban, which was implemented on Saturday, does not apply to long-term contracts that may still be in effect until the end of the current year.
This is reported by Finway
The restrictions will impact Europe’s energy balance
According to estimates by analysts from Wood Mackenzie Ltd. and Energy Aspects Ltd., the new restrictions could reduce the volume of Russian LNG imports to the EU by 2.8–3.5 million tons annually. This is approximately 3% of the total liquefied gas imports expected in Europe in 2025. Currently, about 12% of the EU’s gas comes from Russia, partly through pipelines and partly in the form of LNG.
The restrictions are being implemented against the backdrop of rising gas prices in the region, which have already increased by 40% due to prolonged tensions in the Middle East. Despite this, Europe currently has sufficient gas reserves, made possible by reduced global demand and cautious consumption policies, especially from Asian countries that have limited their consumption due to the blockade of the Strait of Hormuz and are not competing with the EU for supplies.
Strategic decisions and potential consequences
“EU officials have repeatedly stated that there should be no return to European dependence on imports of Russian energy resources, which have been significantly reduced since Moscow’s full-scale invasion of Ukraine. At the same time, they have consistently urged member states to prioritize filling storage facilities.”
Experts predict that in the coming months, EU countries will need to increase gas purchases to prepare for the next winter. In the event of a worsening situation, the European Commission has the right to declare a state of emergency and temporarily allow the import of Russian LNG on the spot market.
Most leading European energy companies, including France’s TotalEnergies SE, Spain’s Naturgy Energy Group SA, and Germany’s SEFE Securing Energy for Europe GmbH, will be forced to terminate their contracts with Russian suppliers next year. Despite this, Russian “Novatek” is already ramping up gas exports to Asian markets, particularly from its Arctic facility in Yamal.
Meanwhile, Slovakia is preparing to challenge the EU’s decision to ban the import of Russian gas, planning to file a lawsuit seeking a preliminary court ruling in the coming days.