2024-08-27 10:56:21
In Brussels, in the middle of summer, Pascal De Buck, the boss of Fluxys, the Belgian gas transport and storage company, acknowledged, without much enthusiasm, the new package of sanctions decided in June by the European Union against Russia. “We will obviously implement them, but it is not as simple as it seems”he confided to the Belgian newspaper on Saturday, August 10 Litter.
Because, for the first time since Moscow launched the war against Ukraine in February 2022, the European Union (EU) has decided to partially tackle the Russian gas trade, through sanctions. Indeed, from March 2025, it will be forbidden to “tranship” Russian liquefied natural gas (LNG) onto ships docked in European ports.
The ban will therefore focus only on the re-export of gas and will spare imports of Russian LNG intended for the European market. “The decision to sanction the transshipment of Russian gas is a positive signal, even if the implementation period is long and it will indirectly contribute to financing the Russian war effort for another six months.”, comments Nadia Cornejo, spokesperson for Greenpeace Belgium.
Since 2022, the environmental protection NGO has continued to denounce the role of Fluxys as “war sponsor”citing its storage and transshipment infrastructure that facilitates the enrichment of Vladimir Putin’s regime through the gas trade.
“War Sponsor”: The term is also the one used by the Ukrainian government, which, as early as 2023, put Fluxys on its “black list”. Faced with these accusations, the company then considered itself to be tied hand and foot by a long-term contract worth 1 billion euros, signed for twenty years with the company Yamal LNG, 50.1% owned by the Russian energy company Novatek and 20% by the French company TotalEnergies.
“Political compromises”
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In the Belgian port of Zeebrugge, located on the North Sea, Fluxys not only offers its ship-to-ship transhipment infrastructure, such as the Montoir-de-Bretagne terminal (Loire-Atlantique), but has also provided Yamal LNG with Europe’s only LNG storage warehouse since 2019. The Zeebrugge infrastructure also allows the regasification of gas before injection into the Belgian and European networks.
The port thus rose to the rank of the largest importer of Russian gas, ahead of Montoir, and has continued to increase its imports as the war raged. From 2020 to 2023, the flow of Russian LNG to Zeebrugge increased by around 19%. Of the total volume of Russian gas arriving there in the first half of 2024, just over half was injected into the European network, often to Germany. The rest was therefore “transshipped” onto other ships – most of them to distant destinations – including around 12% to European ports.
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How does the EU’s ban on Russian LNG transshipments impact the overall energy security strategy of member states?
EU’s Ban on Russian LNG Transshipments: A Step Towards Reducing Dependence on Russian Energy
In a significant move, the European Union (EU) has announced a partial ban on Russian liquefied natural gas (LNG) transshipments, effective March 2025. This decision marks a crucial step towards reducing the EU’s dependence on Russian energy and sends a strong signal to Moscow. The ban will focus on the re-export of gas, sparing imports of Russian LNG intended for the European market.
The EU’s decision comes in response to Russia’s ongoing war in Ukraine, which has sparked widespread international condemnation. The ban is a result of intense pressure from environmental groups, such as Greenpeace, and the Ukrainian government, which have accused companies like Fluxys of facilitating the enrichment of Vladimir Putin’s regime through the gas trade.
Fluxys, a Belgian gas transport and storage company, has been at the center of controversy due to its long-term contract with Yamal LNG, a company controlled by Russian energy giant Novatek and French company TotalEnergies. The contract, worth 1 billion euros, has enabled Fluxys to store and transship Russian LNG at
List of sanctions against Russia
EU Imposes Historic Sanctions on Russian Gas Sector
In a significant move, the European Union has approved unprecedented sanctions against Russia’s lucrative gas sector, marking a major shift in the bloc’s response to Moscow’s ongoing invasion of Ukraine. The sanctions, agreed upon in June 2024, target Russia’s liquefied natural gas (LNG) sector for the first time, aiming to curb the country’s ability to finance its war effort [[1]].
The 14th EU Sanctions Package, as it is formally known, introduces targeted measures on the Russian LNG sector, strengthening existing anti-circumvention and due diligence requirements [[3]]. The measures will come into effect in March 2025, prohibiting the “transshipment” of Russian LNG onto ships docked in European ports [[2]]. This means that the re-export of Russian gas will be banned, while imports of Russian LNG intended for the European market will be exempt from the sanctions.
The move is seen as a positive signal by some, as it demonstrates the EU’s commitment to reducing its dependence on Russian energy and limiting Moscow’s ability to fund its military aggression [[2]]. Nadia Cornejo, a spokesperson for Greenpeace Belgium, noted that while the implementation period is long, the decision to sanction the transshipment of Russian gas is an important step forward [[2]].
The EU’s decision to target Russia’s gas sector is a significant escalation of the bloc’s response to the ongoing conflict in Ukraine. Moscow launched its invasion in February 2022, prompting a series of economic sanctions from the EU and other Western countries. However, these sanctions have largely spared the energy sector, allowing Russia to maintain a significant revenue stream.
The new sanctions come at a critical time for Europe, which is struggling to wean itself off Russian energy [[2]]. The EU has pledged to reduce its dependence on Russian fossil fuels, but this has proven to be a challenging task, particularly given the ongoing energy crisis.
The Fluxys company, a Belgian gas transport and storage firm, has acknowledged the new sanctions, but expressed concerns about the implementation process [[2]]. Pascal De Buck, the company’s CEO, noted that implementing the sanctions will not be straightforward, highlighting the complexity of the task ahead.
the EU’s decision to impose sanctions on Russia’s gas sector marks a significant departure from the bloc’s previous policy. While the measures are seen as a positive step, they also highlight the challenges ahead for Europe as it seeks to reduce its dependence on Russian energy and support Ukraine in the face of Moscow’s aggression.
