EU plan to block Russian LNG services hits legal hurdles
The European Union’s plan to ban services for Russian liquefied natural gas (LNG) operators has encountered legal issues, De Tijd reported on Tuesday. The measure was included in a wider proposal to stop importing Russian gas by 2027, as Moscow’s share of the EU’s gas supply was still at 19 per cent in 2024.
Belgium called for a ban on the service due to a long-term contract between the gas grid operator Fluxys and Yamal LNG, a Novatek subsidiary, which runs until 2039 and covers LNG transhipments at the Zeebrugge terminal. This deal, worth around 1 billion euros, makes it more difficult to remove Russian operators from Europe’s energy system.
Fluxys has warned that a sudden ban could cause market disruption if Russian cargoes cannot be replaced, while Belgian diplomats caution that it could lead to supply insecurity.
Trade regulation vs. sanction
Initially, the European Commission sought to introduce the measure through a trade regulation rather than sanctions. This would require only a qualified majority of member states, thus avoiding vetoes from Hungary and Slovakia.
However, the Commission's legal service and that of the Council of the EU reportedly concluded that excluding Russian operators would constitute a 'disguised sanction' that could be challenged in the European Court of Justice. Consequently, the relevant articles were quietly dropped from the draft law.
The current compromise leaves it to national governments to restrict services under certain conditions. If Yamal fails to source non-Russian gas or defaults on payments, its reserved capacity in Zeebrugge could be cancelled and resold, thereby avoiding costly penalties for Fluxys.
The legislation, which keeps the 2027 import ban intact but sidesteps the most contentious legal risks, must still be finalised by member states and the European Parliament. Fluxys has said that it will comply with whatever framework is adopted.
#FlandersNewsService | © BELGA PHOTO NICOLAS MAETERLINCK
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