EU bans reexport of Russian LNG, tightening sanctions on global trade

The European Commission announced on 1 June that, from 2025 onward, companies based in the EU will be prohibited from trading or intermediating Russian liquefied natural gas (LNG) for any destination, including non‑EU markets. The rule expands earlier sanctions that only barred direct Russian gas imports, now targeting the entire supply chain regardless of the cargo’s final market.

The ban applies to all EU firms, affecting major traders such as TotalEnergies, SEFE and Naturgy. Naturgy warned that contracts worth more than €10 billion could be jeopardised, potentially altering cash‑flow forecasts and hedging strategies. Legal disputes may arise over force‑majeure clauses in existing long‑term agreements.

For Russia, the measure cuts off a key conduit for Yamal LNG volumes that the EU imported – nearly 15 million tonnes in 2025 – and forces a restructuring of global LNG routes and partnerships, likely raising costs for re‑routing cargoes to Asia or the Middle East.