EU Commission clarifies all Russian LNG trade is banned from 2027 for EU operators

EU-based companies will be prohibited from selling Russian liquefied natural gas next year, even if buyers are located outside the EU, according to a letter seen by Reuters on Thursday.

"The ban prohibits companies to trade/market Russian LNG to third countries as it is not relevant whether the Russian LNG is destined for the EU or not," said the letter dated June 1 from the office of EU Energy Commissioner Dan Jorgensen, addressed to Poten and Partners, a shipping brokerage and LNG advisory.

While the European Union voted to stop importing Russian gas by 2027 in response to Moscow's war with Ukraine, several EU-based companies holding long-term contracts for Russian LNG have said those rules, coupled with sanctions against Russia, were unclear about whether firms would be able to divert those cargoes to buyers outside the EU.

"The transfer of Russian LNG by Union operators irrespective of final destination is prohibited in the context of the LNG ban," the letter states.

The European Commission did not respond to a request for comment on the letter.

Last year, the EU imported 14.94 million metric tons from the Yamal LNG project in Russia's western Arctic, a figure that looks set to rise so far this year. France's TotalEnergies, Germany's SEFE and Spain's Naturgy NTGY.MC all hold long-term purchase contracts.

FIRMS COUNTED ON DIVERTING CARGOES

Total, which owns a 20% stake in Yamal, said in February that if it were prohibited from marketing that gas outside the EU it would consider selling its stake.

Total CEO Patrick Pouyanne said earlier this month he still had not received clarity on the matter from authorities, after receiving conflicting legal advice.

TotalEnergies declined to comment on the letter on Thursday.

Naturgy warned in its 2025 annual report that the import ban would affect 10.95 billion euros ($12.57 billion) in purchase commitments for Russian gas.

Manuel García Cobaleda, Naturgy's general counsel, told Reuters in a February interview that the EU sanctions were designed to be able to allow companies to invoke "force majeure," legally relieving them from obligations to comply with their purchase contracts.

"But as with any force majeure, civil law states, and the contract also states, that in order to invoke it, all parties have to make an effort to mitigate the damage... These mitigation efforts include, among other things, being able to send those volumes to places other than Europe," Garcia Cobaleda said.

Naturgy and SEFE did not immediately respond to requests for comment on Thursday.

Other Yamal shareholders include private Russian firm Novatek (60%) and China's CNPC (20%).

($1 = 0.8712 euros)

(Reuters)