EU targets LNG sector in new sanctions in opposition to Russia | Russia-Ukraine battle Information

Newest package deal bars re-exports of Russian LNG through Europe, however specialists say measure can have little impact.

European Union international locations have agreed to a brand new spherical of sanctions in opposition to Russia, concentrating on its profitable liquefied pure gasoline (LNG) sector for the primary time.

The bloc’s newest package deal, the 14th since Russia launched its full-scale invasion of Ukraine, would “strip Russia of additional power revenues”, mentioned European Fee President Ursula von der Leyen on Thursday in a publish on X.

The measures, which don’t embrace a prohibition on the acquisition of Russian LNG by EU international locations, ban the re-export of Russian gasoline to 3rd international locations through European waters.

Fuel market specialists say the ban can have little impact since Europe will nonetheless purchase Russian gasoline, and trans-shipments through EU ports to Asia symbolize solely about 10 p.c of complete Russian LNG exports.

European ports matter for Russia because the continent affords a key route for LNG exports from frozen Arctic ports to Asian markets in winter months.

The Belgian port of Zeebrugge and the French port of Montoir are particularly necessary hubs for re-exports to international locations equivalent to China, Taiwan and Turkey.

Extra measures within the package deal purpose to make it tougher for Russia to make use of a “shadow fleet” of vessels with obscured origins to get round EU sanctions on Russian crude oil.

The EU can be hitting Moscow’s SPFS financial institution messaging system, utilized by Russia to attempt to ease the results of being lower off by the West from the worldwide SWIFT monetary switch system.

🇪🇺 EU Ambassadors simply agreed on a strong and substantial 14th package deal of sanctions in response to the Russian aggression in opposition to Ukraine.

This package deal gives new focused measures and maximises the influence of present sanctions by closing loopholes.

— Belgian Presidency of the Council of the EU 2024 (@EU2024BE) June 20, 2024

Watered down

Belgium, which holds the rotating EU presidency, described the sanctions as “highly effective and substantial” on Thursday.

“This package deal gives new focused measures and maximises the influence of present sanctions by closing loopholes,” it posted on X.

However negotiations, which dragged on for greater than a month, finally noticed a watering down of one of many fee’s key proposals beneath strain from Germany.

The proposal would have obliged EU companies to stop the re-export of their sanctioned merchandise to Russia through third international locations, together with former Soviet states, Turkey, and the United Arab Emirates.

The EU is seeking to clamp down on the movement of dual-use applied sciences, equivalent to washer chips, that could possibly be utilized by Russia on the battlefield.

EU diplomats mentioned Germany had requested for an influence evaluation, and the measure could possibly be included at a later date.

They cited German considerations over enterprise regulation and requests for modifications as the primary cause why the brand new sanctions on Russia took so lengthy to finalise.

Diplomats mentioned a number of extra Chinese language companies accused of aiding Russia’s navy have been additionally being added to a blacklist stopping corporations within the European bloc from buying and selling with them.

Restrictions have been additionally being positioned on political events, suppose tanks and media suppliers accepting cash from Russia, to attempt to curb alleged meddling by Moscow.

Total, 47 new entities and 69 people have been added to the EU sanctions checklist, bringing the entire to 2,200. The package deal is ready to be formally adopted when EU international ministers meet on Monday.