EU shelves idea of sanctions on Russian LNG imports

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BRUSSELS (Reuters) – European officials have dropped the idea of pushing for a ban on the bloc’s Russian liquefied natural gas imports in upcoming packages because of resistance from some governments and uncertainty about alternative sources, EU officials said.

Instead, the Commission wants to iron out a new road map to end the bloc’s reliance on Russian energy by 2027. The plan is due to be announced in early May but details are scarce.

The Commission is expected to propose a 17th package of sanctions on Russia by June, though officials say work on the measures is moving slowly. The Commission last floated the idea of a ban on Russian LNG imports with EU governments in January when it was finalising its 16th package proposal.

U.S. President Donald Trump has said several times he wanted the EU to buy more American gas and EU officials see that as a possible negotiation tool to convince the U.S. administration to drop its tariffs. However, Washington has still not clearly outlined its demands.

The EU’s trade chief met his U.S. counterpart on Monday to discuss the start of negotiations. The Commission said the meeting was a part of a “scoping exercise” and noted Washington has yet to clarify its demands.

“The EU is doing its part. Now, it is necessary for the U.S. to define its position. As with every negotiation, this must be a two-way street,” the statement said.

One official said the Commission did not want to risk losing Russian LNG through sanctions and thereby surrender its negotiating power.

The Commission and EU governments are also wary of creating a new dependence on the United States, the third-largest gas supplier to the bloc after Russia and Norway.

(Reporting by Julia Payne in Brussels; Editing by Matthew Lewis)