EU grants one-year carve-out for Russian LNG shipments to third countries

An exemption from the ban on transporting Russian LNG to third countries, included in the EU's 21st sanctions package, will remain in force for one year with the possibility of extension, Report's European bureau informs.

European Commission spokesperson Siobhan McGarry made the remarks at a briefing in Brussels.

She said the exemption applies only to the transportation of Russian LNG to third countries and to purchase transactions linked to such supplies. According to McGarry, the measure does not change the EU's overall course of increasing sanctions pressure on Moscow.

She said European operators would be able to carry out such operations only under contracts signed before the start of Russia's full-scale invasion of Ukraine. Transport volumes must not exceed the 2025 level.

McGarry said the exemption would remain in force for one year, with the possibility of review. During this period, the European Commission will maintain constant monitoring and require reporting on cargo volumes, routes and prices.

The EU Council adopted the 21st sanctions package against Russia last week. It includes new restrictions in the energy, financial and trade sectors. The temporary exemption for Russian LNG was included in the package at the insistence of Greece, whose largest shipping companies are actively involved in global LNG transportation.

According to European diplomats and media, Athens sought to soften the ban, warning of possible negative consequences for European shipping and the risk that this segment of the market could shift to carriers from third countries. Greece's refusal to compromise made it impossible to adopt the sanctions decision, and the deadlock was overcome by introducing an exemption on this issue.