EU Commission clarifies that all Russian LNG trading is banned for EU operators from 2027, as shown in a letter
According to a letter that was seen on Thursday, EU-based firms will be prohibited from selling Russian Liquefied Natural Gas next year even if the buyers are located outside of the EU.
The letter from EU Energy Commissioner Dan Jorgensen dated 1 June, addressed to Poten and Partners a shipping broker and LNG advisory, stated that "the ban prohibits companies to market/trade Russian LNG in third countries, as it does not matter whether the Russian gas is intended for the EU or otherwise."
While the European Union has voted to end the import of Russian gas in 2027 as a response to Moscow’s war against?Ukraine several EU-based firms holding long-term Russian LNG contracts have stated that these rules, along with sanctions against Russia were unclear on whether firms would be able to?divert those cargoes outside the EU.
The letter says that "the transfer of Russian LNG from Union operators to any final destination, regardless of its origin or destination," is forbidden in the context of LNG ban.
The European Commission has not responded to a request for comments on the letter.
The EU imported 14,94 million metric tonnes of LNG from the Yamal project in Russia's west Arctic last year. This figure is expected to increase this year. TotalEnergies, Germany's SEFE, and Naturgy of Spain all have long-term contracts.
FIRMS COUNTED CARGO DIVERSION
Total, which holds a 20% stake of Yamal, stated in February that it would sell its stake if it was prohibited from selling the gas outside of the EU.
Patrick Pouyanne, the CEO of Total, said he had received conflicting legal opinions and still did not have clarity from the authorities on this matter.
TotalEnergies refused to comment on the letter on Thursday.
Naturgy warned that in its annual report for 2025, the import ban could affect purchase commitments of?10.95?billion ($12.57 billion) for Russian gas.
Manuel Garcia Cobaleda was Naturgy's General Counsel. He said in an interview with the New York Times that EU sanctions are designed to allow companies to legally invoke "force majeure" and be released from their obligations to adhere to purchase contracts.
"As with any force majeure in civil law, the contract states that all parties must make an effort to minimize the damage before they can invoke it. "These mitigation efforts include, for example, being able to?send those volumes in places other than Europe", Garcia Cobaleda stated.
On Thursday, neither SEFE nor Naturgy responded to comments immediately.
Yamal's other shareholders include the private Russian company Novatek (60%) as well as China's CNPC (20%).
(source: Reuters)
