Europe is targeting Russian LNG projects under new sanctions and pledging 1.5 gigawatts (GW) of renewables investment to Ukraine, on the third anniversary of Russia’s invasion.
Under a 16th package of sanctions, the EU extends the prohibition to provide goods, technology and services for the completion of Russian LNG projects, and crude oil projects in Russia, such as the Vostok oil project, and extends the existing software ban to restrict the export, supply or provision of oil and gas exploration software to Russia.
The EU has decided to completely prohibit temporary storage or the placement under free zone procedures of Russian crude oil or petroleum products in EU ports, which was until now allowed, if the oil complied with the price cap and went to a third country.
Other notable additions, in a wide-ranging package covering trade, transport, finance and infrastructure, include a direct import ban on Russian aluminium.
Additional export restrictions have been introduced on industrial goods, specifically targeting minerals, chemicals, steel, glass materials, and fireworks, with special military significance.
European Commission President Ursula Von der Leyen said, “We will fully integrate Ukraine’s and Moldova’s electricity market with our electricity market by the end next year. And we will seize the full potential of Ukraine’s vast gas storages, of which 80% are located close to EU Member States.”
“This generates income for Ukraine. All these efforts will result in greater energy security for both – Ukraine and the European Union.”
Only a fully independent energy system can shield Ukraine from current attacks and future pressure, she added.
“Ukraine’s full integration with the EU energy market will act as part of the overall security guarantees the EU can provide, as well as an effective pre-condition for reconstruction as energy security is key to allow for investments to flow across the country,” she said.
“For three years, Russia has sought to plunge Ukraine into darkness by relentlessly targeting the energy infrastructure. This needs to stop for good. With the package we offer today Europe will ensure Ukraine has a resilient, secure and competitive energy system. More renewable energy and full energy markets integration will bring to greater energy security both for Ukraine and the European Union.”
The Commission will also assist in funding gas purchases, especially through the Ukraine Facility together with its implementing partners, which wil result in ‘ample gas reserves’ to ensure security of supply, benefiting both Ukraine and the wider region.
European member states have spent €134bn supporting Ukraine since 2022.
