EU approves first-ever sanctions on Russian gas

By Antonia Zimmermann, Camille Gijs, Victor Jack, Koen Verhelst | 06/21/2024 06:26 AM EDT

It’s a notable evolution in strategy for the EU and came after Germany and Hungary held up a deal for weeks.

A view of a floating facility for converting liquified natural gas back into gaseous form.

The penalties will ban EU ports from reselling Russian LNG after it arrives and block financing for Russia’s planned Arctic and Baltic LNG terminals. Pool photo by Norbert Fellechner

The EU will hit Russia with unprecedented sanctions against its lucrative gas sector, according to the Belgian EU presidency — a once-unthinkable step that could drain hundreds of millions from Moscow’s war chest.

The decision, which EU ambassadors reached Thursday morning, came after stiff opposition from Germany and Hungary stalled a deal for weeks — though over different parts of the package.

The penalties won’t hit the majority of Russia’s liquid natural gas exports to the EU. Instead, they will ban EU ports from reselling Russian LNG after it arrives and block financing for Russia’s planned Arctic and Baltic LNG terminals.

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It’s a notable moment for the EU. Since Russian President Vladimir Putin’s full-scale invasion of Ukraine in February 2022, the bloc has left Russian gas unsanctioned — even as it slapped strict bans on oil and coal exports. But with evidence mounting that Western efforts to drain Moscow’s fossil fuel revenues are falling woefully short, pressure has been building to go after gas.

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