EU states to discuss sanctions proposal restricting Russian gas trade for first time ever

Ambassadors from the 27 EU member states will on Wednesday, 8 May discuss a proposal for a new package of sanctions against Russia, the 14th so far. The sanctions will focus on restricting Moscow's profits from the supply of liquefied natural gas (LNG).

Source: Politico, as reported by European Pravda

Details: The European Commission wants EU countries to stop re-exporting Russian LNG. If the EU states agree to the Commission's proposal, it will be the first time the EU has acted against Russia's robust gas sector in response to its full-scale invasion of Ukraine.

Although the EU has banned imports of Russian coal and seaborne crude oil, the Commission is not proposing an outright ban on Russian LNG, which EU members such as Belgium, France and Spain still buy in large quantities. Instead, the Commission proposes to take action against what is known as LNG transhipment through EU ports.

This would particularly affect Russia's Yamal LNG plant, which relies on icebreaking tankers to extract the fuel. The Russian LNG is then unloaded at EU ports, from where it is shipped to other countries worldwide.

Furthermore, the new sanctions would ban EU firms from investing in future LNG projects in Russia, limiting the sector's ability to expand, which "thereby limits Russia’s revenues".

The sanctions package is also expected to include a ban on imports of Russian helium.

The ambassadors will also discuss proposed restrictions on European political parties, non-governmental organisations and media outlets that accept cash from the Russian government and its proxies.

In addition, four media outlets accused of spreading pro-Russian propaganda, including Voice of Europe, are to be added to the sanctions list.

The EU sanctions must be approved unanimously by 27 member states, and the proposal may change before it is finally approved.

Background: Media reports have previously indicated that the European Commission had sent a draft proposal for the 14th package of sanctions to EU countries.

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