Russia decides to redirect some LNG now supplied to Europe to other markets - deputy PM
MOSCOW. March 10 (Interfax) - Russian companies will redirect part of the liquefied natural gas (LNG) currently being supplied to European countries to other markets, without waiting for the European Union's looming import ban to take effect.
"In accordance with the president's instructions, we have worked through this issue today. We discussed in detail the current situation and the possibilities of reorienting gas. A decision was made that part of the LNG currently supplied to Europe will be redirected to other markets where constructive, pragmatic relations are being built with our country, where there is demand and [where there is] the opportunity to conclude long-term contracts," Deputy Prime Minister Alexander Novak said.
He said new contracts might potentially be signed with companies from China, India, the Philippines and Thailand, for example.
Novak said that during the meeting, it was noted that market forecasts for the Asia-Pacific region pointed to long-term growth in demand, which is also backed by data showing economic growth rates higher than the global average.
"We plan to supply global energy markets, primarily those countries interested in Russian gas and planning to build long-term, constructive relationships with us. And such opportunities exist: our companies have confirmed this today and are already in talks," Novak said.
Russian President Vladimir Putin on March 4 asked the government and companies to think about halting gas supplies to the European market without waiting for the import ban to go into effect.
"Some other markets are opening up, and it might be more advantageous for us to halt shipments to the European market right now and go to the markets that are opening up and gain a foothold there. And I also want to be clear on this: there's no political agenda. But if they close themselves to us in a month or two, we'd better halt [supplies] right now and go to countries that are reliable partners and gain a foothold there," Putin said.
In October 2025, the European Union adopted the 19th package of sanctions against Russia, which includes a ban on LNG purchases. The first stage will come into effect on April 25, 2026 and will only apply to yearly contracts. A full embargo is expected to take effect on January 1, 2027.
In addition, the EU adopted a directive banning imports of Russian gas in general, including a ban on LNG imports under short-term contracts taking effect on April 25, 2026, and that on pipeline gas supplies under short-term contracts taking effect on June 17, 2026.
As for long-term contracts for pipeline gas supplies concluded before June 17, 2025 and that have not been amended, their execution is permitted until September 30, 2027. Contracts for LNG supplies would be valid until January 1, 2027.
As concerns pipeline gas, a permit may be extended for another month if a particular country fails to fill its storage facilities to the required level. In this case, it will be required to notify the European Commission no later than September 15, 2027.
Russia exports LNG to Europe from the Yamal LNG project, a joint venture between Russia's Novatek, with 50.1%, and France's TotalEnergies and China's CNPC with 20% each.
Russia exported 52 billion cubic meters of gas to the EU in 2024, including 20 bcm in the form of LNG. After gas transit through Ukraine was stopped at the beginning of 2025, Russia accounted for 13% of EU gas imports, which amounted to 20 bcm in the form of regasified LNG and 16.5 bcm of pipeline gas for the year. About 17% of Europe's LNG imports come from Russia.
When the Yamal LNG plant, with capacity of 16.5 million tonnes, was built, it was said that about 95% of its gas had been contracted under long-term contracts in Asia. The company later launched another train with capacity of 900,000 tonnes per year using a different technology. In addition, thanks to subzero temperatures, the plant is operating above capacity, producing about 20 million-22 million tonnes of LNG per year. The additional gas is sold under spot and medium-term contracts.
The gas from the project is contracted by its shareholders and other companies that, having LNG from throughout the world in their portfolios, can swap it with Yamal gas and ship to the most lucrative markets.
TotalEnergies bought the largest amount from Yamal LNG, 4 million tonnes per year, while CNPC bought 3 million tonnes. Russian gas giant Gazprom bought 2.9 million tonnes per year for delivery to the Indian market (since the nationalization of Gazprom's German subsidiary, this volume has been managed by Germany's SEFE); Spain's Naturgy bought 2.5 million tonnes; and Novatek bought only 2.4 million tonnes. Of its 2.38 million tonnes, Novatek Gas & Power contracted 1 million tonnes to France's Engie, 0.9 million tonnes to Shell (SPB: RDS.A) International Trading Middle East and 0.5 million tonnes to trader Gunvor.
It was reported that spot volumes from Yamal LNG were distributed among project shareholders in proportion to their stakes, so Novatek Gas & Power could trade about 2.5 million tonnes of LNG on the spot market.
