Despite, but also thanks to, the numerous sanctions imposed on Russia after the invasion of Ukraine, Russia earns more from the export of liquefied gas to the European Union. LNG imports from Russia have increased by more than 40% in the last year.
Increased LNG imports from Russia also come at a price for EU member states. From January to September, member states spent more than €12.5 billion on imports. That’s more than five times what it was a year ago, writes Bloomberg. France and Belgium in particular are driving LNG exports to Russia. Thanks in part to these countries, Russia is Northwest Europe’s second largest LNG supplier, just after the United States and ahead of Qatar, according to transport data.
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The huge explosion in LNG imports from EU member states has to do with Russia’s invasion of Ukraine. Putin hopes the EU will end support for Ukraine by limiting gas exports through pipelines. Ever since Putin put pressure on the EU with this, EU member states have been hastily looking for alternatives, such as liquid LNG. Many countries have purchased new gas storage facilities for this purpose and concluded important agreements with other countries. Yet Russia continues to benefit, despite all the punitive measures the EU has introduced against it.
No gas fines
There are, however, some European countries that have stopped importing Russian LNG. The UK and the Baltic states, among others, reject LNG from Russia. However, the EU has not banned gas from Russia. However, an import ban on Russian oil will be introduced from the beginning of December.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
