The maritime industries from countries supporting Ukraine, including members of the G7 and the EU, provided for more than 90% of Russian exports of liquefied natural gas in 2023, totaling €15.5B. 96% of Russia’s maritime LNG exports were carried out with the assistance of countries including Australia, Norway, and Switzerland, which was up from 93% in 2022.
After the Russian invasion of Ukraine, the EU undertook to quickly reduce its dependence on Russian fossil fuels with the aim of completely renouncing imports by 2027. While sanctions have been imposed on oil and coal imports, little has been done to limit Russia’s gas trade.
Last year, the EU paid Russia €8.2B for natural gas and received half of Russia’s LNG exports, although this accounted for only 5% of the EU’s total gas consumption in 2023.
Therefore, given Russia’s limited number of vessels equipped to transport LNG and the importance of preserving European cargo insurance, there are significant levers of influence for introducing sanctions on Russian gas.