Poland proposed steps to limit the import of Russian LNG to the EU

At the Energy Forum of Poland (Forum Energii), methods were proposed that would allow Russia to be permanently removed from the natural gas market. EU sanctions do not apply to the import of LNG and LPG. Only in 2022, EU countries paid a record €16 billion for Russian LNG.

The long-term program for the development of LNG production in Russia foresees that the production of LNG in the country will increase by at least three times by 2035 and will receive new sales markets.

The hesitancy of Western European countries to import Russian LNG may help Russia regain its share of the European market, lost after a significant reduction in pipeline supplies, it was said. This will reduce the effectiveness of European policies aimed at reducing dependence on Russian resources and reducing Russia's ability to finance the military sector.

To prevent such a scenario, the Energy Forum suggested introducing an embargo on the import of Russian LNG, similar to the one that was introduced for Russian oil. This would make it possible to maintain the supply of gas through Ukraine in the direction of Hungary. At the same time, it will reduce the possibility of imports to countries with diversification potential, such as France or Spain.

An alternative solution is the introduction of price caps on Russian LNG. Under the cap, LNG could only be imported at a pre-agreed maximum price. The mechanism could be similar to the restriction on the provision of services for the transportation of Russian oil. The maximum price could be set every two months at a level lower than the average TTF price. Such a decision should significantly reduce Russia's profits from exports to the EU and will reduce concerns about gas shortages.