Imports of Russian LNG to the EU Increased by 40 Percent This Year Despite Efforts to Reduce Dependence on Moscow

The European Union seems to say one thing and do another. Despite all claims that they are fully trying to move away from Russian energy sources by 2027, member states are expected to import record amounts of liquefied natural gas (LNG) from Russia this year.

In the first seven months of this year, Belgium and Spain were the second and third largest buyers of Russian LNG, while China ranked first. Overall, LNG imports to the EU increased by 40 percent in the first seven months compared to the same period in 2021.

The European Union had not imported significant amounts of LNG before the war in Ukraine due to its dependence on other Russian energy sources, so the increase was expected. However, according to data from the international organization Global Witness, this represents a much sharper increase than the average global increase in Russian LNG imports, which was around six percent during the same period.

The analysis by this NGO is based on data from the analytical company Kpler, which shows that the EU is importing about 1.7 percent more Russian LNG than it did last year when imports reached a record level.

Members of Global Witness stated upon the release of this analysis that they are shocked at how EU countries have worked so hard to abandon fossil fuels only to replace them with Russian LNG.

– This means that European companies are still sending billions into the hands of Vladimir Putin – said Global Witness representatives.

Still Exposed to Moscow

Most of the Russian LNG comes from the Yamal LNG project, which is majority-owned by the Russian company Novatek, although the project also involves French Total Energies, Chinese CNPC, and the Chinese state fund.

By importing Russian LNG, the European Union continues to leave itself exposed to the Kremlin if Putin decides to reduce supply, as he did with gas last year, even though it is continuously stated that the entire Union’s current goal is to reduce dependence on Russia.

According to the Financial Times, long-term European buyers of Russian LNG will continue to take contracted amounts of liquefied gas unless authorities prohibit it, although a ban on imports to the EU would again cause some disruptions in supply chains.

For instance, Belgium imports huge amounts of Russian LNG because its port of Zeebrugge is one of the few European points for LNG transshipment, and the Spanish utility Naturgy and French Total Energies also have long-term contracts for large quantities of Russian LNG.

Spanish Energy Minister Teresa Ribera, whose government currently holds the EU presidency, stated in March that this situation is absurd and that European companies cannot afford to import Russian LNG.

European Commissioner for Energy Kadri Simson also stated that the bloc ‘can and should completely rid itself of Russian gas as soon as possible’ while keeping supply security in mind.

While EU officials persist in their efforts to fully distance themselves from Russia, a direct ban on LNG imports risks triggering an energy crisis similar to last year’s when gas prices in the EU reached record levels of over 300 euros per megawatt hour. Although European gas storage is now over 90 percent full, there is still nervousness that supply issues may arise.

Russian LNG accounted for 21.6 million or 16 percent of the total 133.5 million cubic meters of LNG imports to the EU from January to July, making Russia the second-largest supplier after the USA.