Germany and the United Kingdom are taking decisive steps to reduce imports of liquefied natural gas (LNG) from the Russian Federation, while China, on the contrary, is ramping up efforts to support supplies of this energy resource.
This is reported by Business • Media
Germany Terminates Long-Term Contract with the Russian Federation
The German Ministry of Economy has instructed SEFE, a company that was previously part of the Russian “Gazprom” and was nationalized after the start of the full-scale invasion of Ukraine, to terminate the existing agreement for the import of Russian LNG. The basis for this move may be the declaration of force majeure, which would allow the company to refuse to fulfill its obligations due to new European Union sanctions and the EU’s aim to completely abandon Russian energy resources.
According to the current agreement, which is set to last until 2040, an annual import of 2.9 million tons of Russian LNG was anticipated. The contract does not allow for unilateral withdrawal, and termination could cost around €10 billion (approximately $11.6 billion). However, if force majeure circumstances are confirmed, these costs will not be payable.
The United Kingdom Bans Support for Exporting Russian LNG
The UK government plans to prohibit domestic companies from providing transportation and insurance services related to the export of Russian LNG. The ban will be implemented gradually throughout 2026 in cooperation with European partners.
“The ban will be gradually implemented throughout 2026 together with our European partners,” the country’s Foreign Office stated.
These actions are aimed at further increasing pressure on the Russian Federation and reducing its revenues from energy exports.
China Increases Imports of Russian LNG via Shadow Fleet
Amid the efforts of European countries to abandon Russian gas, China, on the contrary, is intensifying imports of sanctioned Russian LNG. To this end, the country is building up its own shadow fleet of vessels used for transporting the energy resource despite international restrictions. Russia is also expanding its shadow fleet, which already consists of over a dozen vessels, in order to maintain export volumes amid sanctions pressure.