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bne July 2024 Companies & Markets I 13
EU to target LNG and helium in 14th sanctions package against Russia
bne IntelliNews
On June 24 the EU will adopt a 14th sanctions package
to punish Russia for its full-scale military invasion of Ukraine, with the main focus of the sanctions reportedly to be the liquefied natural gas (LNG), Reuters reports citing diplomatic sources and confirming previous reports.
Reportedly, the 14th EU sanction package will target transshipment of Russian LNG in European ports, which
will also make it more difficult to deliver LNG from Russia
to Asia (about 10% of total shipments to Asia). In addition, any investment, supply of goods and services to Russian LNG projects will be reportedly banned.
Western sanctions are thwarting Russia’s planned expansion in the global LNG market. As previously suggested by bne IntelliNews, US sanctions will make it difficult for Novatek
to obtain ice tankers for the Arctic LNG-2 project and will potentially delay the launch of LNG shipments.
The package will also target Russia's shadow fleet of oil tankers with more than a dozen vessels. EU companies operating outside Russia will be banned from connecting to the Russian analogue of SWIFT, the National Payment System, and
from working with public companies that use the system to circumvent sanctions.
The 14th sanction package will also impose a ban on imports of Russian helium. Russia had previously planned to rank among the top three producers of this gas, The Bell recalls.
EU companies will also be reportedly banned from transacting with banks that provide Russia with goods and technology directly or indirectly used in the production of weapons.
The package will include 47 companies and 60 individuals. Reportedly, among them will be Taimuraz Bolloyev, president of the nationalised Baltika of Danish brewer Carlsberg, Igor Altushkin, owner of the Russian Copper Company, and Roman Trotsenko, a former adviser to Rosneft’s CEO Igor Sechin and owner of the Aeon investment group.
Despite the EU's determination to implement these new measures, the package still requires approval from all member states. A decision is anticipated before the upcoming meeting of EU foreign ministers on June 24.
The EUobserver reported that while Hungary has agreed to the new sanctions, Germany remains cautious about the potential impact on European subsidiaries operating within the Russian Federation.
Western sanctions are thwarting Russia’s planned expansion in the global LNG market. / bne IntelliNews
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