Page 23 - RusRPTJun24

2.9 EU turning a blind eye to Russian LNG transhipments
Europe has been turning a blind eye to a fifth of Russia’s LNG output that is flowing through EU ports to either be consumed by member states of sent on to customers around the world, in what is a lucrative trade for the Kremlin.
Since the start of the war in Ukraine, the EU has been trying to wean itself off Russian energy, but the hard to replace gas has been the most problematic. The destruction of the Nord Stream 1&2 pipelines last year removed a large part of Russian gas imports, but gas still arrives via pipelines through Ukraine and Turkey. However, imports of LNG have soared and remain unsanctioned. Europe remains hooked on Russian gas.
That might change soon as the EU is debating introducing sanctions on LNG in the upcoming fourteenth sanctions package, but as reported by bne IntelliNews the new rules on LNG imports are vague and will be left to member states to choose to implement. The upshot is that Russian LNG imports are unlikely to change in the near-term.
Despite ambitions set out in the EU’s REPowerEU plan, European terminals are not only importing Russian LNG but are also facilitating transshipments to other markets, enabling Russia to evade sanctions and restrictions.
Transshipments remain a big loophole at European LNG terminals and often aren't counted in official import figures, allowing policymakers to ignore this part of Russian imports. When LNG is unloaded, stored, and later re-exported, it may be classified as an import despite not entering the importing nation's energy network. The blurred classification results in Russian LNG moving through EU ports largely unnoticed. Of all the Russian LNG that was received by Belgium and France between January and September 2023, 37% was transshipped, according toa note from the Institute for Energy Economics and Financial Analysis.
23 RUSSIA Country Report June 2024 www.intellinews.com