The decision of the Commission to not touch Russian LNG is a sign of persistent divisions among the 27 member states. Ten countries, including the Nordic and Baltic states – none of which currently imports Russian LNG – called for a ban last month.
Price concerns return to forefront
Concerns over supply security and price stability among those member states relying more heavily on Russian LNG – primarily France, Spain, and Belgium – have come back into focus this winter, hampering progress on the issue.
Gas prices across the EU remain significantly higher compared to most parts of the world.
Cold temperatures have resulted in a larger drawdown of reserves compared to the previous two winters. Recent U.S. sanctions targeting two smaller Russian LNG plants, Portovaya and Vysotsk, also rattled markets and officials, with price increases in the immediate aftermath.
Transshipment ban
The impact of the final round of sanctions by the Biden Administration before leaving office may have inadvertently dampened interest to further destabilize gas supplies with the EU’s own measures.