EU Increases Russian LNG Imports Amidst New US Sanctions Impacting India’s Energy Supplies
As the conflict in Ukraine approaches its third anniversary, the United States and its European allies have intensified sanctions against Russia’s energy sector. The outgoing Biden administration recently imposed sanctions on over 200 entities and individuals involved in Russia’s energy industry, aiming to curtail revenue streams that support Moscow’s military activities.
Despite these measures, European Union (EU) countries have continued to import significant quantities of Russian liquefied natural gas (LNG). In 2024, Europe purchased a record 17.8 million metric tonnes of LNG from Russia, an increase of more than 2 million tonnes compared to 2023. This surge occurred even as the EU sought to reduce its dependence on Russian pipeline gas, which previously accounted for 40% of its gas imports before the Ukraine conflict.
The EU’s reliance on Russian LNG is partly due to competitive pricing and shorter delivery times, especially during peak winter demand. Additionally, European shipyards in France and Denmark have been servicing Russian ice-class LNG tankers, facilitating the continued flow of LNG from Russia’s Yamal plant.
In contrast, the latest U.S. sanctions are poised to disrupt India’s oil and gas imports from Russia. Indian refiners, who have been purchasing Russian crude at discounted rates, may face challenges in securing supplies once the wind-down period for existing contracts ends on March 12. The cessation of price discounts and the need to seek alternative sources could impact India’s energy security and economic stability.
While the EU continues to benefit from Russian LNG imports, the broader implications of the new sanctions highlight the complex dynamics of global energy markets. The situation underscores the challenges faced by countries like India, which must navigate geopolitical tensions to secure their energy needs.
