EU "covers" Russian gas

Ngọc Vân |

A series of EU countries have requested tightening reporting rules across the bloc on Russian gas imports.

The Financial Times reported that France, along with nine other European Union (EU) countries including Austria and the Czech Republic, sent a document before the meeting of EU Energy Ministers on October 15.

The country called on the European Commission to require companies that have registered to import Russian LNG at EU ports to clearly identify their import volumes.

French Energy Minister Agnes Pannier-Runacher said that "the highest level of transparency regarding LNG" is necessary to "eliminate dependence on Russian fuel".

According to data from the Institute for Energy Economics and Financial Analysis (IEEFA), in the first half of 2024, Russian gas imports to the EU increased by 11% compared to the same period last year, despite the European Union's efforts to "use" Russian fossil fuels.

France, Spain and Belgium account for 87% of Europe's LNG imports from Russia in the first half of 2024, with imports to France doubling, while imports to Belgium falling 16%.

Belgium, which has long called for EU sanctions on Russian LNG, said in a separate document on October 15 that it has been developing a mechanism to trace the origin of LNG, "to help track and limit Russian LNG if necessary".

After gas is imported into the EU, it is difficult to track its final destination because it is often mixed with gas from other sources and is bound by trade- sensitive contracts.

Efforts to reduce Russian fuel flows into the EU have been hampered by Hungary, which has consistently opposed sanctions and sought to extend existing agreements with Russia's oil giant Gazprom.

Last week, Budapest signed a deal with Gazprom to continue gas supplies via the Turkish pipeline.

Russian gas also enters the EU via Ukraine - despite the conflict - under a contract that expires at the end of this year. A senior European official said discussions on extending the contract were "a very sensitive issue". "We need to acknowledge the fact that Ukraine is receiving transit revenue," the official said.

Sven Giegold, German Chancellor for Economy and Climate Action, said it was "concerning" to see increased Russian fuel imports and the European Commission should propose a "roadmap to reduce Russian fuel imports to zero".

This concern arose after the EU took a first step to limit Russian LNG in June by sanctioning the transit and re-export of Russian fuel to third countries - from EU ports.

EU countries including the Netherlands have raised concerns that the ban has an unintended side effect of increasing the amount of goods transported into the EU because they can no longer be re-exported elsewhere, although the ban will only officially take effect in March next year.

Ngọc Vân
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