EU wants to speed up end of Russian gas imports

BRUSSELS - The European Commission plans to end all purchases of Russian liquefied natural gas (LNG) by 2026 - a year earlier than originally envisaged - while tightening sanctions against Russian banks and crypto-platforms that circumvent sanctions. That's according to a draft obtained by Politico.

The proposal represents the latest set of measures to be adopted by the EU as part of its 19th sanctions package since Russia's invasion of Ukraine in 2022, targeting financial networks, energy exports and Moscow's alternative trade channels. The aim is to further dry up "the Kremlin's war chest".

According to the text, the purpose of the ban on Russian LNG "further reduce Russia's fossil fuel export revenues, increase the costs of its illegal actions in Ukraine, and put maximum pressure on Russia to end its offensive war against Ukraine."

However, the package, announced on Friday by Commission President Ursula von der Leyen, is likely to meet resistance from Hungary and Slovakia. Indeed, any sanctions package requires the unanimous support of all member states.

A key point in the proposal is the Commission's decision to end Russian LNG imports a year early - with a deadline of the end of 2026 for long-term contracts. Shorter contracts would have to end within six months of the package coming into force.

At the same time, the EU is negotiating a separate law that would ban Russian LNG from the end of 2027. The new sanctions package goes even further, as it applies not only to physical deliveries, but also to the purchases themselves.

In addition to restrictions on Russian banks, the EU is also targeting crypto platforms for the first time and wants to ban all cryptocurrency transactions to close a loophole that Russia is using to circumvent sanctions. European firms should also be banned from trading with non-European ports if they are used to transport military technology - such as missiles - or to circumvent the price cap on Russian oil agreed with the G7.

Brussels also wants to focus on special economic zones in Russia that attract foreign investors with tax breaks. Under the proposal, investment by EU firms in these zones would be banned.

The proposal, dated 19 September, also bans for five years the reinsurance of old Russian aircraft and ships after their sale.

The package also includes the extension of export controls to 45 other companies that Brussels says are involved in sanctions evasion. These include 12 Chinese, two Thai and three Indian companies that an EU diplomat said "allowed Russia to circumvent sanctions".

And symbolically, the EU is to ban the provision of "services directly related to tourist activities in Russia", the text states.

Politico/gnews.cz - GH