Brussels, EU
In a bold and decisive move to intensify economic pressure on the Kremlin, the European Union’s top leadership today proposed a new package of sanctions, including a highly anticipated ban on Russian liquefied natural gas (LNG). This latest effort, spearheaded by European Commission President Ursula von der Leyen, is a direct attempt to further hobble Moscow’s war economy, which she says is sustained by fossil fuel revenues. The EU’s 19th sanctions package marks a forceful step to accelerate the bloc’s energy independence and to pressure Moscow over the Ukraine war.
The proposal, which needs the unanimous backing of all 27 member states, would see the EU speed up its phase-out of Russian LNG imports by a full year, with a target date of January 2027. This ambitious timeline represents a significant escalation in the bloc’s economic campaign against Russia, which has already seen bans on Russian coal and a near-complete embargo on crude oil imports. While previous measures successfully slashed the EU’s reliance on Russian energy, LNG remained a lucrative loophole for Moscow, making up a sizable portion of the bloc’s total gas imports.
Key Points
* New Sanctions Package Proposed: The European Commission has unveiled its 19th package of sanctions against Russia, with a primary focus on banning imports of Russian liquefied natural gas (LNG) to further cripple Moscow’s war funding.
* LNG Ban Accelerated: The proposal aims to phase out all Russian LNG imports by January 2027, a full year earlier than a previously considered plan, signaling the EU’s growing resolve to cut off Russia’s energy revenues.
* Revenues Targeted: EU officials, including Commission President Ursula von der Leyen, have stated that the sanctions are designed to “cut these revenues” that sustain Russia’s military, with LNG sales being a key remaining source of income.
* Third Countries Included: The sanctions package extends beyond Russia’s borders, targeting banks, firms, and shipping vessels in third countries, including China and India, that are accused of helping Moscow circumvent previous sanctions.
* Political Hurdles Remain: While the move has strong support, it still requires unanimous approval from all EU member states, with historical opposition from countries like Hungary and Slovakia potentially posing a significant hurdle to its passage.
Speaking in Brussels, von der Leyen was blunt about the proposal’s intent. “Russia’s war economy is sustained by revenues from fossil fuels. We want to cut these revenues,” she said. “It is time to turn off the tap.” She highlighted that despite 18 previous rounds of sanctions, a persistent flow of LNG has allowed Russia to maintain its war effort, a situation the EU is now determined to end. EU foreign policy chief Kaja Kallas echoed this sentiment, confirming on social media that “Our aim is to speed up the phase-out of Russian liquefied natural gas by 1 Jan 2027.”
The new sanctions package is a complex and comprehensive effort. It’s not limited to just LNG. According to officials, it also seeks to impose a full transaction ban on major Russian energy companies like Rosneft and Gazprom Neft, as well as blacklist 118 more vessels in what is known as Russia’s “shadow fleet,” a collection of aging tankers used to circumvent previous oil export curbs. Furthermore, the sanctions are set to target petrochemical firms and oil traders in third countries accused of aiding Russia, with von der Leyen noting, “We are now going after those who fuel Russia’s war by purchasing oil in breach of the sanctions.” This expansion of sanctions to include entities in countries like China and India represents a major shift in the EU’s strategy, aiming to close the financial loopholes that have allowed Russia to sustain its economy.
The decision to target LNG imports specifically underscores the EU’s determination to completely decouple from Russian energy. While Russia’s share of the EU’s total gas imports has plummeted from 45% before the war to just 19% in 2024, the remaining LNG shipments still represent a substantial and reliable source of revenue for Moscow. For European nations, the move is a calculated risk, as it will require them to fully secure alternative supplies, primarily from the United States, Qatar, and Norway. Analysts believe that Europe’s significant investments in new import terminals and renewable energy sources over the past few years have made a total phase-out of Russian gas now feasible, even if it comes with potential market volatility.
However, the political road ahead for this sanctions package is not entirely clear. Historically, energy sanctions have been the most difficult for the EU to agree on, given the varying levels of dependence among member states. Hungary and Slovakia, in particular, have maintained a more cooperative relationship with Moscow and have used their veto power to gain exemptions from previous sanction packages. Analysts anticipate that they will once again voice their opposition to a complete ban on LNG. The EU’s ability to navigate these internal divisions will be the ultimate test of its resolve and the speed with which it can truly sever its financial ties to the Kremlin.
