Even as the European Union has pledged to completely wean itself off of Russian energy products by 2027, the bloc is presently poised to purchase record volumes of Russian liquified natural gas (LNG) this year, according to the latest research released by Global Witness on Wednesday.
The data revealed that members of the bloc have continued to import large quantities of Russian LNG throughout the first seven months of this year.
Since the beginning of the Russian military action in Ukraine, the EU has banned imports of seaborne Russian oil, and seen deliveries of pipeline gas from Russia dramatically curtailed. However in spite of repeated calls from EU officials to similarly sanction Russian deliveries of LNG, it has remained unsanctioned.
EU members Belgium and Spain were the second and third-largest purchasers of Russian LNG in the world, with Belgium buying 7.5 million cubic meters (mcm), and Spain purchasing 7.1 mcm. France came in at number five, purchasing 4.5 mcm. The largest buyer was China, with 8.7 mcm purchased from Russia. Japan came in fourth, with 7 mcm.
Jonathan Noronha-Gant, senior campaigner at Global Witness said, “It’s shocking that countries in the EU have worked so hard to wean themselves off piped Russian fossil gas only to replace it with the shipped equivalent.”
In total, members of the EU purchased 21.6 mcm of Russian LNG over the first seven months of 2023, which beat out the 21.3 mcm purchased over the same period last year. However the report notes this year’s figure represents a 40% increase over the figure for the first seven months of 2021, a data point the report calls “embarrassing.”
Between January and July, the EU is estimated to have been responsible for the purchase of 52% of all LNG exports between January and July, beating out its figure of 49% for 2022, and 39% for 2021.
According to the report, over the first seven months of the year, the cost of LNG imported by members of the bloc at spot price added up to €5.29 billion ($5.77 billion).
Analysts note that given the EU did not import large quantities of LNG prior to the conflict in Ukraine, when it relied on pipeline supplies, the increase in LNG purchases is even more significant, as it clearly represents that for all its political bluster, the EU has continued to purchase Russian energy, just in a different form it has not publicized.
The report notes that EU shipments of LNG are mostly produced at the Yamal plant, which is a joint venture between the nation’s biggest LNG producer, Novatek, French energy major TotalEnergies, China’s CNPC, and a Chinese state fund.
The report confirmed prior data from Eurostat, which showed that Russia was the second-largest supplier of LNG to the EU in the first quarter of 2023, just behind the United States, but beating out Qatar, Algeria, Norway, and Nigeria.
