A law will soon be implemented in the EU that will allow governments to block gas purchases from Russia without imposing sanctions.
The EU wants to completely abandon Russian gas
European Commissioner for Energy Kadri Simson said that the EU is increasing pressure on importers of liquefied natural gas from the Russian Federation to significantly reduce purchases.
According to Bloomberg , the latest efforts of the European Union are aimed at redistributing supplies and undermining the financing of the Russian military machine. On Friday, Simson discussed the issue of increasing LNG supplies with the representative of the US, which is currently the largest supplier of liquefied gas to the EU.
My message was that this year should bring a further decline in Russian exports. In the EU, we are gradually increasing pressure on European players to reduce purchases of Russian LNG, and here again confidence in supplies from the US is important.
Kadri Simson
European Commissioner for Energy
According to her, European governments will get a new tool to stop purchases of Russian gas when a new law comes into effect that will allow blocking such flows without imposing additional sanctions. It will happen in a few weeks.
This will allow EU countries to temporarily prohibit Russian and Belarusian exporters from reserving the infrastructure capacity necessary for LNG supplies.
We have seen Russia reduce its revenues in recent months, but we still need to do much more to prevent Russian LNG from entering European markets.
Anti-Russian sanctions are beneficial
Russia's budget deficit widened more than expected last year as oil and gas revenues fell by nearly a quarter, according to Bloomberg.
Thus, the budget deficit of the Russian Federation reached 3.2 trillion rubles ($36.1 billion), which corresponds to 1.9% of Russia's GDP.
The deficit widened as spending exceeded forecasts by 11%. According to the Ministry of Finance of the Russian Federation, taxes on oil and gas — a key source of financing the war against Ukraine — fell by 24% compared to last year, but still accounted for almost a third of the total budget revenues last year.
The flow of petrodollars has declined, as Russian barrel prices have fallen against the background of a downturn in the global crude oil market and the strengthening of Western energy sanctions, the publication writes.
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