European Countries Continue to Import Record Amounts of Russian LNG Despite Calls for a Ban
According to a Bloomberg report, European countries are still importing record amounts of liquefied natural gas (LNG) from Russia, despite calls to ban such deliveries. The current import volumes have already surpassed the amounts Russia delivered to Europe via Ukraine before January 1st.
This situation is seen as a proof of the difficulties Europe faces in cutting its economic ties with Moscow. Over the past decade, Russia has developed into one of the European Union’s most important energy suppliers.
Record LNG Imports and High Values
Bloomberg reports that the volume of Russian LNG, which stood at around 10.5 million tons in 2020, has risen to a record 15.5 million tons in 2024. These numbers not only demonstrate Europe’s increasing dependence on Russian LNG, but also the political pressure under which these imports are operating. Despite continuous sanctions, Russia has managed to maintain its position as a leading energy supplier to Europe, as reported by the news agency RBK.
Russian Strategic Export Policy
Moscow plans to continue expanding its LNG exports, while pipeline gas is increasingly being diverted to other buyers such as China. “Europe will still need gas, as all efforts to wean itself off Russian gas have not been successful. In the end, Europe will likely have to buy more Russian LNG to offset the decline in pipeline gas imports” explained Tatjana Orlowa, an economist at Oxford Economics, in a statement to Bloomberg. At the same time, Russia is pursuing a strategic diversification of its export routes.
Restrictions on Pipeline Deliveries
The transit of gas through Ukraine was long the main delivery route for Russian pipeline gas to Western and Central Europe. This contract expired at the end of December 2024, as Ukraine declined to extend it.
Gazprom, however, continues to deliver gas to South and Southeast European countries via the TurkStream pipeline. Deliveries via the Yamal-Europe pipeline were halted in 2022 due to reciprocal restrictions between Poland and Russia. Moreover, the transport of gas through the Nord Stream pipelines has not been possible since the September 2022 explosions and is currently not desired. The increased LNG share is partly compensating for these losses, which further solidifies Russia’s importance on the European energy market.
Gas Reserves and Price Increases in Europe
Europe is consuming its gas reserves faster than in the past seven years due to the cold weather, as reported by Bloomberg. This increases the risk of short-term price spikes, as predicted by analysts. In response, Europe is increasing its LNG imports from Russia, which have not been affected by sanctions so far. According to the Institute for Energy and Financial Analysis, Russia was the second-largest LNG supplier to Europe in the first half of 2024, with a market share of 21 percent, behind the USA (46 percent) and ahead of Qatar (11 percent).
Price Development and Stability
By early January, European gas prices had reached the highest levels since October 2023. Despite the shutdown of pipeline gas deliveries from Russia, the EU Commission stated that electricity prices in Europe remained stable. These developments illustrate the ongoing challenges of the energy crisis in Europe and the dependence on Russian energy deliveries, which remains despite the political tensions.