Member states of the European Union have agreed to a fresh set of sanctions on Russia, targeting its profitable liquefied natural gas (LNG) industry for the first time.

The latest sanctions package, the 14th since Russia's comprehensive invasion of Ukraine, aims to cut Russia's energy income further, European Commission President Ursula von der Leyen noted on Thursday in a post on X.

The new measures, which do not prevent EU nations from buying Russian LNG, restrict the re-exportation of Russian gas to other countries via European waters.

Energy market analysts contend that this prohibition will have minimal impact as Europe will continue purchasing Russian gas, and trans-shipments from EU ports to Asia constitute only about 10% of Russia’s total LNG exports.

For Russia, European ports are significant as they offer vital routes for LNG exports from icy Arctic ports to Asian markets during the winter.

The ports in Zeebrugge, Belgium, and Montoir, France, play critical roles in re-exports to nations like China, Taiwan, and Turkey.

Other measures in the package aim to hinder Russia from using a “shadow fleet” of vessels with hidden origins to bypass EU sanctions on Russian crude oil.

The EU is also imposing sanctions on Moscow’s SPFS bank messaging system, which Russia uses to mitigate the effects of being cut off from the global SWIFT financial transfer system by the West.

Watered down

On Thursday, Belgium, currently holding the rotating EU presidency, described the sanctions as “powerful and substantial.”

“This package introduces new targeted measures and maximizes the impact of existing sanctions by closing loopholes,” it stated in a post on X.

However, negotiations extended for over a month, resulting in the dilution of one of the key proposals due to pressure from Germany.

The initial proposal would have required EU companies to prevent the re-export of their sanctioned products to Russia via third nations, which include former Soviet states, Turkey, and the United Arab Emirates.

The EU aims to control the export of dual-use technologies, like washing machine chips, that Russia might use in warfare.

EU diplomats noted that Germany requested an impact assessment, indicating that the measure might be included at a later time.

German concerns over business regulations and calls for adjustments were cited as primary reasons for the delay in finalizing the new sanctions on Russia.

Diplomats mentioned that more Chinese firms accused of supporting Russia’s military efforts are being added to a blacklist, preventing European companies from trading with them.

Additional restrictions target political parties, think tanks, and media entities accepting funds from Russia, aiming to curb perceived interference by Moscow.

Altogether, 47 new entities and 69 individuals have been added to the EU sanctions list, bringing the total count to 2,200. The package is slated for formal adoption when EU foreign ministers meet on Monday.