G7 and EU to ban imports of Russian gas on routes where Moscow has cut supplies, according to officials involved in the negotiations, the first time pipeline gas trade has been blocked by Western powers since the invasion of Ukraine .
The decision, to be finalized by G7 leaders at a summit in Hiroshima next week, will prevent the resumption of Russian pipeline gas exports on routes to countries such as Poland and Germany, where Moscow cut off supplies last year and triggered an energy crisis Across Europe.
Western powers want to make sure Russia doesn’t get a boost in its energy revenues as they try to ramp up economic pressure 15 months after Moscow attack full-scale invasion of Ukraine.
One of the officials, who all spoke on condition of anonymity, said the move was “to make sure the partners don’t change their minds in the hypothetical future”.
A draft G7 statement seen by the Financial Times says the group of major economies will further reduce its use of Russian energy sources “including preventing the reopening of roads previously closed by Russia’s energy weaponry” until at least when “there will be no resolution of the conflict”.
While the measures are unlikely to affect immediate gas flows, it underscores a deep determination in Brussels to make the rapid and painful departure from decades of dependence on Russian energy permanent.
The ban is highly symbolic because at the start of the war the EU had avoided targeting pipeline flows given their huge dependence on gas from Moscow. Russia went ahead and cut supplies anyway, causing gas prices to soar to more than 10 times their normal level.
But prices have fallen sharply in recent months as Europe successfully cut demand over the winter, accelerated the rollout of renewable energy and provided alternative supplies such as seagoing LNG cargoes.
Moscow’s share of European gas imports has dropped from over 40% to under 10%, and a mild winter has boosted gas storage in the EU.
Officials are confident that the gas storage, which is already about 60% full compared with about 30% during the same period in 2022, will reach capacity well before next winter arrives.
“With European gas storage unusually high for the time of year and wholesale prices returning to what could be considered their normal price range, you can understand why European leaders are confident this plan will not scupper security of supply in the short term,” said Tom Marzec-Manser of the energy consultancy ICIS.
“However, it is important not to become overly complacent about the prospects for the European gas market.”
Pipelines where Russia has cut supplies, including the northern section of the Druzhba line that supplies refineries in Germany and Poland, could also be blocked as part of EU measures to prevent flows from resuming.
The embargo is being discussed by diplomats as part of the 11th EU sanctions package. The commission said it would not comment on sanctions discussions or leaks.
An EU diplomat said the proposal needed further clarification from Brussels to show how the “status quo” would change, particularly when some of Kazakhstan’s oil flows through Druzhba. “It needs to be clear exactly how that would work,” they said.
Berlin and Warsaw, while having an exemption from Russian oil sanctions, said they would voluntarily halt deliveries of crude through Druzhba last year, even as Poland continued to receive supplies until Russia cut off streams in February. German refineries have stopped ordering Russian crude since the beginning of this year.
Some of Russia’s major gas pipelines to Europe — the North stream 1 and 2 pipelines – they were sabotaged last year and only one of their four strings remains. But other pipelines such as the Yamal Line to Poland remain intact.
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