EU member states prepare to discuss banning the use of EU ports for re-exports of liquefied natural gas from Russia; In a new attempt to limit Moscow's revenues from fossil fuels without directly harming European energy consumers, within the fourteenth package of sanctions on Russia.

Russia is a major exporter of liquefied natural gas to Europe. Imports from Russia increased following the war in Ukraine; It is therefore feared that the re-export ban will lead to higher energy costs in Europe, especially as winter approaches.

The Russian company Novatek, which produces liquefied gas, relies on European stopover stations to transport its shipments from the Arctic to markets, and the ban will hinder the company’s ability to redirect shipments to third countries such as China or India. The ban may also anger major gas importing countries such as China. Or India.

This decision also has implications for European companies. Companies such as Securing Energy for Europe, Shell, and Total rely on transporting Novatek shipments in European ports. These companies may face contractual disputes and be forced to search for alternative sources of gas. European storage facilities, such as the Flexis facility, also face “In Zeebrugge, heavy fines if you cannot provide services to Novatek.

Russia may attempt to redirect LNG shipments via the Northern Sea Route or transfer them from ship to ship near Murmansk; Consequently, Russian LNG exports to Asia may decrease, or their prices may rise due to high shipping costs.