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EU allows limited Russian LNG shipping to avoid handing China assets

The EU extended an exemption for EU operators to transport Russian LNG to third countries for one year, removing a Greek veto from its 21st sanctions package.

Reported · Written up by our desk · Trade & Tariffs

The EU has adjusted its latest sanctions on Russia, agreeing to let EU operators continue transporting Russian liquefied natural gas to third countries for one year, after officials concluded that blocking Greek shipping firms could give China strategically important maritime assets, according to SCMP Economy.

SCMP Economy reports that EU member states removed a Greek veto tied to the bloc’s 21st package of measures aimed at hobbling Russia’s war machine, while explaining that China’s involvement in maritime finance and shipping created additional leverage for Beijing across global sectors.

Officials also described why the carve-out matters financially, saying many vessels are purchased through financial arrangements involving long-repayment loans from Chinese investors, with Chinese shareholders tied to the operating companies.

They warned that if revenues from LNG business are insufficient to service the loans, companies could be forced to lose control of assets and transfer them back to the investors, calling the risk very serious and very big.

Latest closeNat gas $2.883 ▲0.6%

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