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The uncoordinated and chaotic EU sanctions policy against Russia has been shown again as largely inoperable as the bloc imported record volumes of Russian liquefied natural gas (LNG) in July.
The situation has come about as although plans exist to end long-term imports of Russian LNG from 2027, its latest watered-down sanctions package carved out exemptions for European companies to continue transporting Russian LNG to third-country markets after some member states voted against measures they said would damage their own economies.
Belgium for example relied entirely on Russian LNG imports in July as disruption in the Middle East curbed alternative supplies to Europe, according to Bloomberg.
The country reportedly imported around 400,000 tons of Russian gas during the month. Moscow remains Europe’s second-largest LNG supplier after the United States.
The EU has faced soaring energy costs after scaling back imports of Russian energy, however LNG has been the commodity the bloc has struggled most to replace since imposing sanctions on Russia in 2022. Before then, Russia supplied about 45% of the EU’s natural gas imports. The EU’s 21st package of sanctions targeting Russia included exemptions after Greece successfully lobbied to preserve European companies’ role in transporting Russian LNG to third-country markets. Athens warned the restrictions would hurt its shipping sector while benefiting foreign competitors.
The Financial Times also reported last month, citing Kpler data, that the EU imported a record 9.89 million tons of LNG from Russia’s Yamal project in the first half of 2026, up 18% from a year earlier. France was the largest importer, followed by Belgium and Spain.
The US war on Iran and the de facto closure of the Strait of Hormuz – a vital route carrying around 20% of global oil and LNG trade – have further strained Europe’s already volatile energy markets this year. The resulting spike in prices, freight costs, and supply disruptions has fueled inflation across the bloc, with analysts warning of gas shortages this winter. Meanwhile, US energy companies have announced their Q2 results, showing profits of US$93 billion over the period -March-June. This further strengthens our belief that the Iran conflict is actually aimed at the EU as a mechanism to encourage them to sign long-term and larger contracts for US LNG supplies.
Moscow has condemned EU sanctions, particularly those targeting energy, as self-defeating, arguing they have undermined the bloc’s competitiveness.
