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Despite sanctions against Russia, EU record imports of liquefied natural gas

2023-09-02T18:30:58.276Z

Highlights: Imports from Russia have risen by 40 percent since the beginning of the Ukraine war – despite sanctions. The EU Commission has set itself the goal of no longer importing Russian gas at all by 2027. Spain imports the most. The main importers are the energy companies Shell and Total. At 16 percent, Russia currently has the second largest share of the EU's LNG imports. The largest share is supplied by the USA. Many countries have long-term contracts that oblige them to import gas.



Status: 02.09.2023, 20:15 p.m.

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Since the beginning of the war, the European Union has wanted to become independent of Russian gas. Despite sanctions, it imports liquefied natural gas in record sums and is even Russia's largest customer.

Brussels – Actually, the EU wants to become independent of Russian gas. Instead, it is now even breaking a record for imports of Russian liquefied natural gas, also known as LNG. Imports from Russia have risen by 40 percent since the beginning of the Ukraine war – despite sanctions.

The NGO Global Witness published the figures with its study last Wednesday (30 August). The study is based on data from the industry service provider Kpler. For example, EU states imported a total of 22 million cubic meters of Russian LNG from January to July.

Liquefied petroleum gas: Spain, Belgium and France import the most

Compared to the same period in 2021, i.e. before the Russian invasion of Ukraine, this is an increase of 40 percent. Around 52 percent of Russian LNG exports were imported into the EU in the first seven months, compared to 49 percent of exports last year and 39 percent in 2021.

Spain imports the most. The country bought 7.5 million cubic meters of Russian liquefied natural gas from January to July. That's 18 percent of Russia's total LNG exports. The only non-EU country that has imported 20 percent more is China. Belgium and France follow Spain with 7.1 million and 4.5 million cubic meters, respectively. Spanish Energy Minister Teresa Ribera called the situation "absurd" and called for an embargo on LNG. However, there are concerns in the EU that an import ban on Russian LNG could lead to a new price shock on the European energy market.

There is a gap in sanctions against Russia

Actually, the EU has not imported natural gas from Russia since its sanctions against Russia. Raw materials are the main source of income for Russia. The embargoes also apply to coal, crude oil and diesel. The supply of gas through pipelines, one of the most important energy sources for many EU countries, was partially terminated by Russia itself last summer.

Controversial technology: The LNG shuttle ship "Coral Fraseri" off the coast of Binz. © BildFunkMV/IMAGO

To compensate for this, the EU relies on the supply of liquefied natural gas, which comes by ship instead of pipelines and is then refined. Russian liquefied natural gas is exempt from sanctions. EU Energy Commissioner Kadri Simson had called on member states to ban imports in March, but to no avail. According to Global Witness, the main importers are the energy companies Shell and Total.

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EU Commission does not want to import Russian gas at all until 2027

"It is shocking to see that many EU countries have become independent of Russian gas via pipelines, only to replace it with LNG by tanker," the Financial Times quotes Global Witness expert Jonathan Noronah-Gant as saying. Furthermore, European companies would transfer billions to Vladimir Putin's war chest. For example, Russia has generated revenues of more than five billion euros from imports.

The EU Commission has set itself the goal of no longer importing Russian gas at all by 2027. At 16 percent, Russia currently has the second largest share of the EU's LNG imports. The largest share is supplied by the USA. Many countries have long-term contracts that oblige them to import Russian gas. The Commission has put forward a plan according to which each Member State should decide for itself whether to allow the injection of liquefied natural gas from Russia into its gas network. However, the project has not yet been coordinated with the EU Parliament.

The EU opposes the report, stressing that imports of fossil fuels from Russia have decreased significantly. Liquefied natural gas accounts for a low proportion of energy imports overall. (Baha Kirlidokme)

Source: merkur

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