The European Commission has said it will work with Washington to make sure that as little disruption as possible will come from the latest tariffs against Russian energy announced by Donald Trump.
The European Union is facing the prospect of another squeeze on its liquefied natural gas (LNG) supplies, as US President Donald Trump’s latest Russia sanctions could disrupt the LNG flows the EU still relies on.
Trump recently signed the Lindsey Graham Sanctions Act, allowing him to impose tariffs of up to 100% on countries still buying Russian oil or natural gas, especially those accused of helping Moscow evade sanctions, China and India chief among them.
While the law does not automatically impose tariffs on the EU, its practical application remains uncertain and creates a new risk for European governments and companies still exposed to Russian gas.
Trump’s new sanctions, though widely welcomed by the EU as a tool to weaken Moscow’s war machine, come at a critical moment. The EU is struggling to refill storage levels to at least 80% by November, according to real-time intelligence platform Global Energy Flow, with winter gas storage at the lowest level for this time of year since records began in 2011. Fierce competition from Asian bidders is also leaving Europe behind.
When asked about whether the Lindsey Graham bill could harm European partners, EU Foreign Affairs chief Kaja Kallas said she “didn’t think” of that, adding that she hopes it isn’t true. She made the remarks on the sidelines of the United Nations General Assembly on 22 September.
Meanwhile, a European Commission spokesperson said that the EU has “clear expectations” that the Graham law “should not impose new commercial barriers in the bilateral EU-US relationship”.
“We will engage with the US with a view to ensuring this outcome,” the Commission spokesperson told Euronews on Wednesday.
Since the US and Israel bombed Iran on 28 February, escalation in the Middle East led to the closure of the Strait of Hormuz and damage to a vital Saudi pipeline, ultimately disrupting LNG transit.
At the same time, the EU is ditching Russian LNG, albeit gas imports from Moscow rose to 17% as landlocked countries were granted exemptions as well as those with long-term contracts that feared legal challenges from Russian energy giant Gazprom. A full ban on LNG imports from Moscow is due on 1 January 2027.
To compound the sense of energy insecurity engulfing the EU, Washington’s move to punish major Russian energy buyers with tariffs of up to 100% could create friction with countries still exposed to Russian gas, such as France, Belgium, the Netherlands and Spain.
Ben McWilliams, affiliate fellow at the Brussels-based think tank Bruegel, said that Trump’s new tariffs “should not change too much” since no Russian LNG should come into the bloc after the 2027 ban.
“I think Russia will be able to reach alternative markets, and do not expect a huge market impact. There has been plenty of time for utilities and traders to prepare,” McWilliams told Euronews.
Beyond LNG, maritime services at risk
But if Washington sanctions all tankers found carrying Russian LNG, the consequences could extend beyond the vessels themselves the German non-profit environmental organisation
“The new US law covers foreign vessels determined to knowingly transport Russian-origin LNG, although designations are not automatic and national-interest waivers are permitted,” reads the Urgewald press statement.
The new US sanctions, which will be reviewed by Congress on 18 October, could also target the owner or operator of a foreign port that allows a US-sanctioned vessel supporting Russia to call or receive services — including those in Europe, such as the Danish port of Odense Havn.
Fayard, a major Danish ship repair shipyard, has faced intense scrutiny and political pushback for servicing Russia-linked Arctic LNG carriers.
Swedish MEP Jonas Sjöstedt (The Left group) criticised the maintenance of a Russian Arc7 LNG tanker currently being repaired in Fayard.
“These vessels are a critical component in Russia’s arctic LNG export, transporting billions of Euros worth of Russian LNG. This must stop. European companies must not be allowed to keep Russia’s fossil-fuel lifeline running. Every repair helps sustain Putin’s illegal war against Ukraine,” said Sjöstedt.
Echoing his words, German MEP Hannah Neumann (The Greens/EFA group) urged Fayard to stop carrying on “business as usual”.
“By putting commercial interests ahead of our collective responsibility to isolate Russia, Fayard is undermining the pressure we are trying to build,” she said.
Source: www.euronews.com
