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Brussels calls for no new supply deals

for Russian LNG

RUSSIA THE European Commission has urged EU According to Bloomberg, the plan could involve
countries and companies not to enter into new requiring gas buyers to disclose the origin of the
Russian LNG supplies supply contracts for Russian LNG, in order to LNG they purchase when the volume is larger
to Europe have further reduce the bloc’s use of the latter’s LNG. than a certain amount.
remained robust. While Russian pipeline gas to Europe has Estonia’s government last month also called
fallen dramatically over the past year and is now for a price cap to be imposed on Russian LNG,
only at 10-15% of the pre-war level, Russian in line with similar limits placed on the country’s
LNG imports into the EU soared 31% in 2022 to oil and oil products.
19.2bn cubic metres. Simson also said that the Commission would
“We can and should get rid of Russian gas propose that a voluntary target to cut EU coun-
completely as soon as possible, still keeping in tries’ gas consumption by 15% be extended to
mind our security of supply,” EU Energy Com- next winter to avoid shortages. The bloc reduced
missioner Kadri Simson told EU lawmakers on its gas use by 19.3% in August through January
March 8. “I encourage all member states and all versus the five-year average for the period.
companies to stop buying Russian LNG, and not While European gas prices have subsided
to sign any new gas contracts with Russia once and gas storage is at an historically high level,
the existing contracts have expired.” analysts have noted that the next few months
This would also help assure other suppliers will be critical for Europe to stockpile sufficient
that Europe is negotiating contracts with, she volumes of gas for next winter. The International
added. Energy Agency (IEA) has warned that if Russia
Earlier this year it was reported that Germa- cuts remaining pipeline deliveries to Europe, if
ny’s government was considering steps to limit China expands LNG purchases and if the next
Russian LNG purchases as part of efforts to winter is unusually cold, the continent could face
ratchet up pressure on Moscow’s revenue stream. fuel shortages. ™

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