EU Implements New Sanctions on Russian Gas: Analysis of Impact and Limitations

The European Union has taken a significant step in its ongoing efforts to sanction Russia by targeting Russian liquefied natural gas exports for the first time. This move comes amidst the prolonged conflict between Russia and Ukraine, which has now entered its 29th month.

The latest package of sanctions, approved by the EU, aims to disrupt Vladimir Putin’s regime by limiting the revenue generated from natural gas exports. While the sanctions will not completely ban Russian LNG shipments, they will restrict trans-shipments off EU ports, preventing the commodity from being sold to third countries via EU ports.

In addition to targeting LNG exports, the sanctions also include bans on new investments in LNG projects under construction in Russia. This is designed to impede Russia’s efforts to expand its LNG exports and gain a larger market share.

Furthermore, the sanctions extend to financial measures, such as restrictions on EU businesses using the Bank of Russia’s financial messaging system. The European Council will also have the authority to blacklist non-Russian third-country banks connected to the system, prohibiting them from engaging with EU operators.

Apart from economic measures, the EU has imposed restrictions on access to Russian media and introduced export restrictions. A blacklist of individuals supporting the war in Ukraine, including prominent Russian singers, has also been established. Additionally, bans on private jet travel to EU resorts have been enforced targeting wealthy Russians.

However, there are concerns about the effectiveness of these sanctions, as they were reportedly watered down to accommodate certain EU member states. The extent to which these measures will impact Russia remains uncertain, particularly considering the significant role of Russian gas in the EU’s energy supply.

Despite the limitations of the sanctions, the EU’s actions underscore its commitment to reducing Russia’s revenue sources and its capacity to wage war. The move highlights the EU’s unity and support for Ukraine in the face of ongoing aggression from Russia.