EU Energy Ministers Discuss Ukraine Energy Crisis and Russian LNG

Officials said that EU energy ministers met on Tuesday in Luxembourg to discuss the rising Russian LNG imports and Ukraine's energy shortages before winter, as well as how to balance energy costs across member states.

In June, the EU approved a 14th set of sanctions including a ban of transhipments of Russian Gas as of March of next year. However, it did not impose a complete ban. Belgium and the Netherlands saw a dramatic increase in imports since then.

In a Monday letter, France and nine countries asked the European Commission for stricter reporting requirements on Russian LNG (liquefied natural gases) to storage companies and suppliers.

Kai Mykkanen (Minister of Climate and Environment for Finland) told reporters in advance of the meeting that "Belgium would file and we would support an initiative to track and ban LNG imports from Russia structurally."

The EU made an announcement shortly after Moscow invaded Ukraine in February 2022. It did not specify a specific date, but stated that it would phase out Russian fossil fuels as soon as possible.

"We've seen a double in the volume of LNG in Belgium." They are likely to be used for the security of supply in Europe, but we are having difficulty implementing this package (14th). That's why we're calling for a tracker system," said Tinne Van der Straeten.

The EU still imports LNG and some Russian natural gas via pipeline. Since the Nord Stream pipeline exploded two years ago, Russian LNG imports into the EU have increased dramatically.

It's time for an alternative. Some countries' internal issues are clouding their judgment and making it difficult to make a quick switch. But it's already been over two years.

In December, the contract between Ukraine and Russia regarding gas flow via Ukraine will expire. Slovakia and Austria are still dependent on this gas to meet a part of their energy needs.

UKRAINE Ahead of Winter

International Energy Agency reported that Ukraine's electricity shortage could reach 6 gigawatts. This was exacerbated due to the termination of the Russian pipeline agreement.

Tuesday, the Commission will provide an update to countries regarding efforts to extend Russia-Ukraine Pipeline Deal. Ukraine has said that it will not continue, while Russia is willing.

Ministers will also consider practical ways to support Ukraine during the winter. Ursula von der Leyen, the Commission's President, said that Russia has knocked down the "power equivalent" of three Baltic States and is aiming to restore 15% of Ukraine’s needs.

Poland has said that it is in talks with Ukraine’s transmission companies about increasing exports, while Lithuania has demolished a power station which is currently being rebuilt in Ukraine.

Ministers will be discussing the report on competitiveness by Mario Draghi, former ECB governor. This is where the incoming Commission expects to base their new industrial policies.

Mykkanen, a Finnish politician, said: "We'll focus on the things that need fixing and that's cross-border infrastructure." ($1 = 0.9283 euros) (Reporting and editing by David Evans; Julia Payne)

(source: Reuters)