European sanctions on Russian LPG imports fully in force now as transitional period ends

MOSCOW. Dec 20 (Interfax) - The 12-month transitional period during which European companies were still able to buy Russian liquefied petroleum gases (LPG) under contracts concluded before EU sanctions were imposed has expired.

The European Union restricted Russian LPG imports on December 18, 2023 as part of its 12th package of sanctions against Russia. The new measures took effect the following day. However, the restrictions did not affect the already signed contracts with a maximum 12-month deferral.

According to EU estimates, the restrictions were supposed to reduce Russia's proceeds by more than a billion euros.

Traditionally, European countries were some of the main export destinations for Russian LPG, with Poland being the biggest consumer among them. Other destinations included the Baltic states and Finland.

According to data from the Polish Liquid Gas Association, Russian products accounted for 53% of Poland's LPG imports in H1 2024. However, LPG imports from Russia started to seriously decline at the beginning of H2, standing at 100,000 tonnes in July and 75,000 in August.

Poland, which remains the largest consumer of Russian LPG, plans to continue to gradually replace Russian imports by similar products from other countries, such as Norway, the United Kingdom, Germany, and the United States. Sweden is also a major supplier of LPG to the Polish market.