Despite Europe’s ongoing efforts to curb energy purchases that fund Russia’s war in Ukraine, French imports of Russian liquefied natural gas (LNG) have more than doubled in the first half of this year, according to recent trade data analysis.
While the European Union has imposed strict limitations on Russian oil imports, natural gas remains exempt. France has emerged as the largest importer, with a report revealing that overall EU imports of Russian LNG increased by 7% in the first six months of this year compared to the same period last year.
Oleh Savytskyi, a founding member of Razom We Stand, a nonprofit advocating for harsher sanctions on Russian fossil fuels, criticized the EU’s progress toward its 2027 goal of phasing out Russian energy, calling it “appallingly off track.” He emphasized that continued purchases of Russian LNG are undermining Europe’s energy transition and channeling billions into Russia’s military efforts.
European leaders have argued that a total ban on Russian gas imports would lead to skyrocketing energy and heating bills, severely impacting both consumers and industrial gas users.
The analysis was spearheaded by the Institute for Energy Economics and Financial Analysis (IEEFA), a U.S.-based nonprofit dedicated to accelerating the global transition to sustainable energy. IEEFA’s findings were based on data from Kpler, a shipping tracker, and ICIS, a commodity data provider. The institute reported that France imported nearly 4.4 billion cubic meters of Russian LNG in the first half of the year, up from just over 2 billion cubic meters during the same period last year. Spain and Belgium, the next largest importers, saw a 1% increase and a 16% decrease in Russian LNG imports, respectively.
TotalEnergies, the French energy giant, accounted for the largest share of these imports. The company stated that its contracts, signed prior to Russia’s invasion of Ukraine, legally bound it to continue purchasing Russian gas. The French Finance and Economy Ministry highlighted that disruptions in LNG imports from the Middle East, due to Houthi rebel attacks on ships navigating the Suez Canal, have forced France to rely more heavily on Russian LNG, which is unaffected by these geopolitical challenges.
As France increased its imports of Russian LNG, it simultaneously reduced imports from other suppliers, including the United States, Angola, Cameroon, Egypt, and Nigeria, with the reduction nearly matching the rise in Russian LNG imports. Notably, these other suppliers were not impacted by the Red Sea attacks.
Although pricing data for Russian LNG is not publicly available, it typically trades at a slight discount due to reluctance from some buyers, according to Jason Feer, global head of business intelligence at energy consultancy Poten and Partners.
Interestingly, the additional LNG imports are not being used to meet domestic demand in France, which actually dropped by 9% during the first half of this year. Instead, France increased its gas exports to Belgium by nearly 10% over the same period, though it remains unclear how much of that exported gas originated from Russia.
“What that tells you is people are making money off this trade,” Feer remarked.
Russia’s largest LNG project, located in the Arctic Circle’s Yamal Peninsula, is a joint venture involving TotalEnergies, which owns a 20% stake. Under a 2018 contract, TotalEnergies is obligated to purchase 4 million tons of LNG from Yamal annually.
TotalEnergies reiterated that it is legally bound to fulfill its contractual obligations as long as European governments deem Russian gas essential for the EU’s energy security. The company noted that its overall imports of Russian LNG into Europe actually declined during the period analyzed.
An EU Commission spokesperson acknowledged a significant drop in Russian gas imports between 2021 and 2023, suggesting that a temporary increase does not undermine the EU’s overall achievements in diversifying its energy supply, now largely reliant on reliable partners like Norway and the United States.
Nevertheless, Savytskyi of Razom We Stand urged the EU to enforce a complete embargo on Russian LNG, arguing that TotalEnergies should not be allowed to keep Europe dependent on Russian gas.
