FT: Russia could export a record amount of LNG to the EU in 2023

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to Business FM on the reasons for and prospects for the growth of Russian LNG supplies to the EU countries:

“In fact, four countries currently buy Russian LNG in the EU — Spain, Belgium, France, and Finland continues to buy in limited volumes. Therefore, the prospects for supplies depend on these four countries. At the same time, the Spanish government once every few months insists on preventing new contracts and stopping imports from Russia as soon as possible. The reasons why Europeans continue to import so much are largely due to the structure of contracts concluded many years ago with Yamal LNG. A significant part of the Yamal gas for the period until the 2030s was contracted by European companies, including Spanish ones, so in addition to what is profitable for them, they are also forced to purchase these volumes, because these are their contractual obligations. At the same time, it is not necessary that this gas should come from European countries, they can resell it in the future in other directions. While Belgium and France turn a blind eye to the increase in imports from Russia, Spain officially scolds its companies, calls them in every possible way to reduce imports, and Finland, most likely, will refuse imports from Russia, the volumes there have already fallen very much, perhaps it will be next year. The European LNG market for Russian companies is not something that is lost in the long term, but it represents a big risk. And dependence on it is very high, both for Yamal LNG and for our Baltic plants.”