The U.S. Department of the Treasury has imposed sanctions on the Russian
liquefied natural gas (LNG) plant Arctic LNG-2. Our team has repeatedly advocated for sanctions on Russian LNG production plants, and in November 2023, the U.S. finally imposed them on the Arctic LNG-2 plant. First, let’s draw your attention to the volumes of Russian LNG consumption by EU countries. Over the first 7 months of this year, Russian LNG imports have increased by 40%, from 15 million cubic meters to 22 million compared to 2021 and by 1.7% compared to 2022. Russia currently stands as the second-largest fuel supplier to the EU, accounting for 16% of the total EU imports from January to July 2023. For instance, Germany, which previously stated its intention to reduce Russian LNG consumption, actually increased it by at least 50% in 2022. (In previous articles, we informed you about how the Belgian company Fluxys delivers Russian gas via pipelines to western lands in Germany.)
Recent media articles reference data from the Institute for Energy Economics and Financial Analysis (IEEFA), indicating that from January 2023 to September 2023, Russian LNG imports to Spain and Belgium doubled compared to the same period in 2022. However, thanks to a well-thought-out policy by the Belgian government, the kingdom consumes only about 5% of Russian gas out of the total gas consumption in Belgium. Essentially, Fluxys, the Belgian company, liquefies and transports almost all LNG from Russia to Germany as requested by the leadership of that country.
We would also like to bring to the attention of the U.S. Department of the Treasury the fact that approximately 70% of the equipment used by Russia in the LNG sector is imported, and consequently, Russia purchases components for it abroad.