The European Union Targets Russian Gas Exports with New Sanctions

On Monday, EU foreign ministers announced the approval of the 14th sanctions package against Russia. The new sanctions aim to close some loopholes for circumventing sanctions and to hit Russian gas exports for the first time. The statement noted that the EU has imposed new sanctions on Russia due to the war in Ukraine, targeting Moscow's fleet of secret liquefied natural gas (LNG) carriers moving in Europe, as well as several companies. The EU estimates that approximately 4 to 6 billion cubic meters (141 to 212 billion cubic feet) of Russian LNG were sent to third countries through EU ports last year. Russia is suspected of operating a 'secret fleet' to evade sanctions and maintain energy revenue streams to finance the war. Diplomats stated that 27 ships have been added to this list, including tankers that exceed the price cap on oil set by the G7 for Russia, as well as vessels transporting North Korean munitions to Russia. In the statement issued at the EU foreign ministers' meeting, the bloc announced that 'the reloading services of Russian LNG within the EU territory will also be banned for the purpose of transferring to third countries.' The new restrictions also include a clause allowing Sweden and Finland to cancel certain LNG contracts with Russia. Europe will prohibit private and charter flights for Russian citizens and companies. This package also bans new investments and services to complete LNG projects under construction in Russia. Some Central European countries still receive pipeline gas from Russia through Ukraine. The EU banned Russian oil imports in 2022 with some limited exemptions. Western powers have imposed extensive sanctions on Moscow since the full-scale invasion of Ukraine began in February 2022, which have gradually increased since then. This new sanctions package adds 116 entities and individuals to the sanctions list, bringing the total to over 2,200. A total of 61 other 'entities' from Russia, often including companies, banks, agencies, and other organizations, have been added to the EU list. Many of these entities, some of which operate in China, Turkey, and the UAE, are accused of circumventing EU sanctions or providing sensitive equipment to Russia. About 50 other officials will also face asset freezes and travel bans. Vladimir Putin, the President of Russia, and Sergey Lavrov, the Foreign Minister, along with dozens of lawmakers and several oligarchs, are among over 1,700 individuals who have already been sanctioned by the EU. More than 400 previously sanctioned entities include companies operating in military, aviation, shipbuilding, and machinery sectors, the Wagner mercenary group, political parties, and banks. Approximately €210 billion ($225 billion) of the Russian central bank's assets are frozen in the EU. The EU's new decision includes restrictions on the export of helium, rare metals, and manganese ore, as well as restrictions on financing Russia for think tanks and NGOs.