The new economic sanctions against Russia are aimed at limiting the country’s opportunities to use EU ports for exporting LNG to Asia. These sanctions were reached after long negotiations led by Belgium in Brussels, describing the package as powerful and significant. The details of the sanctions are not fully known yet, but measures are expected to focus on import, financing, and handling of Russian LNG in EU ports.
Russia currently uses EU ports to export LNG from Arctic Ocean ports to Asia, a crucial source of revenue for the country. However, with Russia relying on LNG as a key source of income after pipeline gas supplies to Europe collapsed, these sanctions could have a significant impact on the country’s economy.
Coastal states in the Baltic Sea, including Finland, have pushed for sanctions on Russia’s shadow fleet, which involves non-Russian tankers used to circumvent oil price ceilings set by Western countries. This practice not only poses economic concerns but also increases the risk of environmental damage in the region. The sanctions package is likely to include measures targeting sea, road, and air traffic to prevent evasion of these restrictions.
To further prevent circumvention, the sanctions aim to restrict subsidiary companies of European firms in third countries from exporting sanctioned products to Russia. This issue was one of the most challenging aspects of the negotiations, with Germany particularly concerned about the impact on its companies. Technology exports to Russia are also expected to face increasing restrictions as part of the sanctions.
The official approval of the sanctions is scheduled for a meeting of EU foreign ministers on Monday, after which the full package will be published. The focus on energy exports, particularly LNG, signifies the EU’s efforts to economically pressure Russia in response to its actions.
