Europe moves to cut Russian gas supplies
Photo: The European Union is beginning to restrict imports of Russian gas (Getty Images)
Starting April 25, the European Union will ban the purchase of Russian liquefied natural gas (LNG) on the spot market amid the war in Iran, according to Bloomberg.
Currently, the EU covers about 12% of its gas needs with Russian supplies, some of which arrive via pipelines. Analysts estimate that the ban on spot purchases could reduce Russian LNG supplies to Europe by 2.8–3.5 million tons per year.
Despite the war in the Middle East and restrictions on shipments through the Strait of Hormuz, Tom Marzec-Manser, Director of Gas and LNG for Europe at Wood Mackenzie, does not see significant risks to gas supplies to the EU.
He notes that countries will have to increase imports to fill gas storage facilities before next winter.
"We don’t see much of a risk to supply just yet, but there could be a change in a couple of months," the expert says.
In turn, Tom Purdie, an analyst at Energy Aspects, noted that if the situation worsens, the European Commission could declare a state of emergency and temporarily resume purchases of Russian gas on the spot market. However, he does not expect such a mechanism to be implemented anytime soon.
According to him, a more serious test will come on January 1, 2027, when long-term contracts for the supply of Russian LNG expire.
In particular, major European energy companies, including TotalEnergies SE, Naturgy Energy Group SA, and SEFE Securing Energy for Europe GmbH, will be forced to terminate the relevant agreements.
At the same time, Bloomberg notes that the ban will not lead to the complete disappearance of Russian LNG from the global market.
Novatek has already signed a preliminary agreement to supply gas to Vietnam, and part of the volume may be redirected to Türkiye and Egypt.
In March, Spain purchased a record amount of Russian gas due to the war in the Middle East.
In addition, the Russian energy holding company Gazprom continues to supply liquefied natural gas to China, despite sanctions imposed by the US in 2025.
The European Union is also preparing to resume joint gas purchases at the bloc level. This is Brussels’ response to instability in the Middle East and the threat of an energy crisis.
