BRUSSELS — The European Union is intensifying efforts to prevent Russian liquefied natural gas (LNG) carriers from utilizing Belgian ports for the transit of non-Russian gas globally, marking a significant step in its strategy to completely dissociate from the Russian energy shipping sector.
As the EU progressively tightens sanctions on Russian gas imports, aiming to diminish the Kremlin’s financial resources, a particular segment of the Russian shipping industry has remained largely unregulated. Transshipment services, which involve ports providing long-term docking slots for LNG suppliers to offload or reload cargoes destined for different locations, are still permissible under the recently approved EU-wide ban on Russian gas, as long as the gas itself does not originate from Russia.
Current regulations and implications
The existing sanctions already prohibit the transshipment of Russian gas out of the EU, while the forthcoming legislation will extend to cover re-exports into the bloc, which will be phased in over the coming years. Nevertheless, the continued legal use of transshipment services by Russian vessels means they can still utilize port facilities to manage gas supplies from other nations, including the U.S. and Qatar. Notably, approximately two-thirds of Belgium’s gas imports are channeled to other European countries, with Germany being a primary recipient.
One of the key players in this transshipment sector is Fluxys, the Belgian LNG terminal operator managing operations at the Zeebrugge port, located near Bruges. Fluxys is bound by a 20-year contract, set to expire in 2039, with Yamal LNG, a gas production project spearheaded by Novatek, Russia’s second-largest gas producer.
“LNG tankers find it easier to unload their cargoes at North Sea ports than traversing the ice-bound Arctic route to Asia, which in winter is unnavigable even for icebreakers.”
The ongoing utilization of European ports, especially in Belgium, has faced backlash from several EU member states and lawmakers involved in the legislative process for the broader gas ban. During intense negotiations, Belgium advocated against targeting transshipment services, arguing that the gas amendment would sufficiently cover any associated inflows of Russian LNG.
Future actions and legal considerations
However, persistent opposition from EU lawmakers prompted a compromise during high-level discussions on Tuesday. According to officials familiar with the matter, the European Commission plans to address transshipment infrastructure in its upcoming 20th sanctions package against Russia, anticipated early next year. This agreement allowed opposing member nations to postpone their decision on the transshipment ban while enabling lawmakers to maintain their positions.
Belgium is poised to endorse measures to restrict Russian access to the Zeebrugge facility, provided these actions comply with legal standards. Diplomats and officials have noted that the sanctions regime possesses broader authority to target transshipments compared to the gas import ban, which was framed as a trade regulation. Concerns arise over justifying restrictions on transshipment under trade law, which could lead to legal challenges, undermining the legislative foundation.
This anticipation of legal disputes is already palpable, with Hungarian Foreign Minister Péter Szijjártó criticizing the legislation and declaring Budapest’s intention to challenge the EU in court once it takes effect. Similarly, Russian gas suppliers are expected to contest the ban, emphasizing the critical need for the law’s legal robustness.