The EU today launched its 14th package of sanctions against Russia – this time targeting Vladimir Putin’s liquefied natural gas (LNG) exports for the first time.
The measure is the latest attempt the block deny Mr. put onof the President’s monetary regime as his war against Ukraine drags into its 29th month.
No EU bans on Russian gas yet
The sanctions, which will come into force after a nine-month transition period, fall short of a total ban on Russian LNG shipments.
This partly reflects the fact that EU members themselves are still allowed to buy LNG at Moscow – although the bloc has set a target of phasing out Russian fossil fuels by 2027.
The EU followed suit of the United States and the United Kingdom in banning imports of Russian oil, with one or two limited exceptions, in 2022, after Russia wholesale Ukraine.
What the latest sanctions do
The main measure of the package, signed at the end of last week, in the face of opposition from Germany and Hungaryis a ban on transshipments of Russian LNG at EU ports – essentially preventing the product from being sold to third countries through EU ports.
Part of the package also targets specific ships – initially including 27 tankers – that are used to bypass the price cap imposed on Russian oil by G7 countries.
Over time, it will also target captured ships, for example, transporting ammunition from North Korea to Russia or transporting grain stolen from Ukraine by Moscow.
The latest sanctions package also prohibits new investments and services to complete LNG projects under construction in Russia.
This should, in theory, impede Russia’s attempts to increase its LNG exports and increase market share.
Other elements include a ban on EU companies using the Bank of Russia Financial Message Transfer System (SPFS) – the Bank of Russia’s version of the Western Society for Worldwide Interbank Financial Telecommunication (SWIFT). interbank messaging system.
Under this measure, the European Council will be able to draw up a list of banks from non-Russian third countries linked to the system and ban them from doing business with EU operators.
Targeting rich Russians and pop stars
There are also restrictions on access to Russian media, as well as new technological and export restrictions and a new blacklist of a further 116 people considered to be supporters of the war, including singer Yaroslav Dronov, who performs under the name Shaman and whose song ‘ I’m Russian’ would have been played daily for Alexey Navalnythe late defender of democracy, in his prison cell in the Arctic Circle.
Another popular Russian singer, Polina Gagarina, was also targeted, who performed in front of Putin at an event in Crimea after the invasion of Ukraine.
The EU has also introduced a series of bans, targeting wealthy Russians, on private jet travel to EU resorts.
Read more: A year after Wagner’s rebellion, Putin is stronger than ever
Announcing the measures, the European Commission said: “As Russian aggression against Ukraine continues, the EU remains determined to continue to act to further reduce Russia’s sources of revenue and ability to wage war.
“Today’s measures send a clear and strong signal of the EU’s unity and our support for Ukraine and its people.”
The sanctions are Europe’s latest attempt to put financial pressure on Putin’s regime. Photo: Reuters
Will watered-down sanctions have any impact?
The big question is whether these latest sanctions will actually have much of an impact – especially given the fact that they have been watered down.
Germanyfor example, it would have prevented an extension of measures that would have forced EU companies to ensure that their customers could not sell banned products to Russia.
And Hungary – whose value of Russian LNG imports is increasing by 59% year on year – is said to have demanded guarantees that no current or future measures will impact the Paks II nuclear power plant, which is being built by the Russian state energy company. Rosatom 63 miles southwest of Budapest.
Odds are that sanctions will only go so far in harming Russia.
Still a great supplier
According to Kpler, the data provider, Russia is the second largest supplier of LNG to the EU after the United States. It says that, so far this year, the US has met 41% of the EU’s LNG needs and Russia 21%.
And in May of this year, for the first time since shortly after the invasion of Ukraine in February 2022, imports of Russian LNG were greater than those of American LNG.
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These sanctions also do not cover imports of Russian gas transported to the EU via pipelines through Turkey and Ukraine itself.
Much of this ends up in Central European countries like Austria, which in the first five months of this year had 80% of its gas needs met by Russia, but also in countries like Italy and Belgium.
Furthermore, while transshipment bans will make it more difficult for Russian LNG exports to reach their intended destination, they are unlikely to halt them completely.
They will only force Russia to use longer shipping routes – while much of the LNG previously exported in this way is now, ironically, likely to be sold to customers in Europe itself.
It is always encouraging to see the EU trying to deprive Putin’s war machine of money.
But these sanctions could have gone much further. The fact that they have not done so highlights the extent to which the EU still depends on Russian gas.
This story originally appeared on News.sky.com read the full story
