The EU will ban the purchase of Russian LNG on the spot market starting April 25
Starting April 25, the European Union will impose a ban on the purchase of Russian liquefied natural gas (LNG) on the spot market. However, deliveries under long-term contracts may continue until the end of the year.
This was reported by Bloomberg.
Analysts estimate that this decision could lead to a reduction in Russian LNG supplies to Europe by 2.8–3.5 million tons annually. Currently, the EU covers about 12% of its gas needs from Russia, some of which is delivered via pipelines.
Despite the tense situation on the global energy market, experts do not expect critical disruptions in gas supplies to the European Union. At the same time, EU countries will have to increase imports from other sources to fill gas storage facilities before next winter.
Experts also note that if the situation worsens, the European Commission has the option to declare a state of emergency and temporarily allow the resumption of Russian gas purchases on the spot market. However, such a scenario is currently considered unlikely.
A more serious test for the energy market will come on January 1, 2027, when long-term contracts for the supply of Russian LNG expire. In that case, Europe’s largest energy companies will have to completely abandon Russian gas.
At the same time, the EU ban does not mean that Russian liquefied natural gas will disappear from the global market. It is expected that part of the volume will be redirected to other regions, particularly to countries in Asia, the Middle East, and North Africa.
The European Commission is considering a return to a mechanism for joint gas procurement by EU member states to curb the rapid rise in prices caused by the war in Iran and the de facto closure of the Strait of Hormuz. The proposals call for expanding the AggregateEU platform to coordinate demand not only for gas but also for oil, particularly due to the shortage of jet fuel.
Iran to continue negotiations with the US following Trump’s statements
Trump expressed his willingness to meet personally with Iran’s new leadership
