‘Stop filling Putin’s war chest’: Vivaldi wants European ban on transit of Russian LNG

Despite the daily horrors of war in Ukraine, Europe continues to import significant amounts of Russian gas. On the one hand, this concerns ‘conventional’ gas that enters via pipelines through Ukraine itself, among other places. On the other hand, liquefied gas (LNG) that is traded via ports in Belgium, France and Spain. Last year, 7.8 billion cubic meters of Russian LNG arrived in the port of Zeebrugge. A record.

A fourteenth economic sanctions package against Russia is currently being debated within the European institutions. More and more Member States also want the gas trade to be tackled. German Economy Minister Robert Habeck, for example, spoke out on Thursday in favor of a ban on Russian LNG in Europe. “Germany no longer needs Russian LNG. Berlin advocates a ban.”

Zeebrugge

The federal government in Belgium wants to advocate an interim solution: a ban on the transit of Russian LNG in Europe. The Council of Ministers decided this on Friday. Such a ban would not affect imports to Europe itself, but it would affect the gas that is transferred from one ship to another in European ports – in the jargon: transshipments. The federal government wants attention to be paid to European gas supplies and possible claims for damages. (It remains to be seen what position the federal states will take in order to know the joint Belgian position.)

“The conflict in Ukraine is becoming increasingly hopeless,” says Federal Minister of Energy Tinne Van der Straeten (Green). “We as the European Union have an important responsibility. It is logical that we support the Ukrainians against the Russian invasion, but that only makes sense if we stop adding to Vladimir Putin’s war chest. That is why, as part of a new package of sanctions against Russia, the federal government is calling for a gradual cessation of the transshipment of Russian LNG in European ports.”

Since 2020, Zeebrugge has been a hub for liquefied gas from Siberia. A twenty-year contract with a total value of 1 billion euros, concluded in 2015, allows Russia’s Yamal LNG to ship large quantities of liquefied gas to the port with special icebreaker tankers. About half is intended for Europe itself. The other half is transferred to ‘normal’ tankers to satisfy the world’s energy hunger. From Zeebrugge the LNG is transported to India, among other places.

Fear

As operator of the gas terminal in Zeebrugge, Fluxys has repeatedly emphasized that simply breaking the contract with Yamal LNG is asking for trouble. Then there is a threat of significant damage claims from Russia. “Many question marks remain surrounding such a ban,” says Andries Gryffroy (N-VA), chairman of the board of directors. According to him, the import and transit of Russian liquefied gas in Zeebrugge are covered by the same contract with Yamal LNG. “Separating this will not be easy from a legal perspective.”

“We think this is a good development,” says Angelos Koutsis of Bond Beter Leefmilieu (BBL). “We feel that European momentum is growing to tackle the Russian gas trade. Look at Minister Habeck’s statements. Although it remains to be seen how France and Spain, for example, will act. Large volumes of Russian LNG also arrive in those countries. In France, TotalEnergies has already warned that prices will rise without Russian LNG. A typical way to instill fear.”

According to Koutsis, the fear for gas supplies is unfounded. He refers to recent American studies showing that Europe may face an oversupply of LNG in the coming years.

The federal government also wants to advocate that Europe impose a ban on the import of new nuclear fuel for nuclear power stations from Russia. The Russian nuclear sector is also escaping international economic sanctions for the time being. The G7 has imposed a price ceiling on the Russian oil sector.