Unfulfilled ambitions: Russia’s LNG sector in the grip of sanctions
Unfulfilled ambitions: Russia’s LNG sector in the grip of sanctions

Author(s): Filip Rudnik
Subject(s): Energy and Environmental Studies, Environmental and Energy policy, International relations/trade, Political behavior, Financial Markets, Peace and Conflict Studies, Russian Aggression against Ukraine
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: Russia’s LNG sector; Global LNG market; global LNG exports; sanctions;
Summary/Abstract: The technological sanctions which the West has imposed on Russia’s LNG sector have drastically reduced the opportunities for the industry’s expansion, and made it less likely that Russia can increase its share on the global LNG market. Moreover, the Russian Federation’s ambitious targets for LNG production capacity have not been formally revised, which means that it is now virtually impossible to achieve them. The slim chances of Russia’s LNG production capacity increasing over the coming years have a negative impact on the country’s overall gas exports. In view of Moscow’s political decision to slash pipeline supplies to Europe, liquefied gas could help Russia to mitigate the consequences of this reduction as long as there are no formal restrictions on its imports to the EU; it could also ensure that European consumers remain partly dependent on Russian gas. However, the tough restrictions on technology exports to Russia have significantly reduced the likelihood of this scenario becoming a reality.

• Details
• Contents