① The sanctions seek to ban the use of European ports as transshipment points for Russian liquefied natural gas, rather than completely banning the import of Russian natural gas; ② Von der Leyen claimed: "This strong package of measures will further prevent Russia from obtaining key technology, deprive Russia of more energy income, and undermine Russia's shadow fleet and shadow banking network abroad."
June 20, the financial association news (editor Niuzhanlin) local time Thursday, the European Union member states reached a consensus on the 14th round of sanctions against Russia, which includes the ban on the transfer of Russian liquefied natural gas (LNG), marking the first targeting of liquefied natural gas by the EU in the sanctions against Russia.
European Union officials pointed out that the sanctions seek to ban the use of European ports as transshipment points for Russian liquefied natural gas, rather than completely prohibiting the import of Russian natural gas. Some EU countries are still importing pipeline natural gas from Russia through Ukraine.
However, natural gas market experts say that this sanction will have little effect, as the natural gas transported to Asia through European ports accounts for only about 10% of Russia's total liquefied natural gas exports. Nevertheless, the sanctions will force Russia to reform its liquefied natural gas business model.
EU diplomats said the package also sanctioned three of Russia's liquefied natural gas projects and included a provision to allow Sweden and Finland to cancel their liquefied natural gas contracts with Russia.
Since the Russia-Ukraine conflict, the European Union's dependence on Russian natural gas has decreased by about two-thirds. According to data from the commodity information service provider ICIS, last month, pipeline natural gas and liquefied natural gas from Russia accounted for 15% of the total supply to the European Union, the United Kingdom, Switzerland, Serbia, Bosnia and Herzegovina, and North Macedonia.
More than a dozen ships in Russia's so-called shadow fleet will be subject to sanctions. The European Union alleges that Russia uses these vessels to evade limits on oil prices and other trade sanctions.
Belgium, the rotating presidency of the European Council, believes that these sanctions are powerful and substantive. The package provides new targeted measures and maximizes the impact of existing sanctions by plugging loopholes.
European Commission President von der Leyen claimed: "This strong package of measures will further prevent Russia from obtaining key technology, deprive Russia of more energy income, and undermine Russia's shadow fleet and shadow banking network abroad."
After more than a month of debate, Germany, which opposed the sanctions several times, chose to compromise. However, at Germany's request, the sanction clause requiring EU exporters (including subsidiaries in third countries) to guarantee that their supplied goods will not be transshipped to Russia was ultimately canceled.
An EU diplomat said that Germany has requested an impact assessment, and the sanctions may be included later.
In addition, 47 entities and 69 individuals were added to the EU sanctions list. Diplomats said the package is expected to receive formal approval at a meeting of EU foreign ministers next Monday.