Sweden Wants EU To Sanction Russia’s Shadow Fleet And Ban Its LNG

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Sweden Wants EU To Sanction Russia’s Shadow Fleet And Ban Its LNG

By Tsvetana Paraskova of OilPrice.com

The next round of EU sanctions against Russia over the invasion of Ukraine should include measures to address the shadow fleet of tankers helping Russia move its oil and a ban on EU imports of Russian LNG, Sweden’s foreign minister said on Monday.  

“Adopting the 14th sanctions package is one of the most important things,” Swedish Foreign Minister Tobias Billstrom said arriving at an EU foreign ministers’ meeting in Luxembourg, as carried by Reuters.

“We will see to it that we both include an import ban on liquefied natural gas as well as measures to curb the Russian shadow fleet,” the Swedish minister added.

The EU has just started discussions on the 14th package of sanctions and it is not expected to adopt the measure anytime soon.

EU member states are divided on a ban on LNG imports. Sweden and the Baltic countries press for a ban, but other member states and the EU energy regulator say Europe is now much more dependent on LNG to afford an immediate ban on imports of LNG from Russia.

The European Union should be careful in its efforts to ditch Russian LNG as it should protect its security of gas supply, the European Union Agency for the Cooperation of Energy Regulators, ACER, said in a report last week.

As the EU aims to completely end its reliance on Russian fossil fuels by 2027, “the reduction of Russian LNG imports should be considered in gradual steps starting with spot Russian LNG imports,” ACER said in its report.

“While such measures may target to reduce dependence on Russian gas, it’s important to note that substantial volumes have already been contracted under long-term LNG agreements before the Russian invasion of Ukraine,” the EU regulator said.

“Hence, reductions in Russian LNG imports should be approached with caution, particularly in light of the imminent expiration of the ship-or-pay transit contract for gas pipeline supply from Russia to Europe via Ukraine by the end of 2024.”

Tyler Durden
Tue, 04/23/2024 – 03:30