The European Union's efforts to reduce its dependence on Russian energy have been undermined by a significant increase in purchases of Arctic liquefied natural gas, a new analysis has found.
Between January and June, European countries spent billions of dollars on purchases of Arctic liquefied natural gas, with 136 out of 140 cargoes exported from Russia's flagship Yamal liquefied natural gas project delivered to European Union ports.
China, which was once seen as a major market for the Arctic project, received only four cargoes during the same period, the analysis found.
The shipments were worth roughly €5.96 billion, or about $6.8 billion, based on benchmark European natural gas prices.
The analysis highlights one of the central contradictions confronting Europe four years into Russia's invasion of Ukraine: while European governments have pledged to end dependence on Russian fossil fuels and cut off a key source of the Kremlin's revenue, significant payments for Russian liquefied natural gas continue flowing.
French ports were the destination for 51 cargoes from the Yamal liquefied natural gas project, followed by Belgium with 37 and Spain with 34 during the first six months of the year, according to the analysis.
The findings come as NATO allies have committed to sharply increasing defense spending to 5% of GDP in response to Russia's invasion of Ukraine, highlighting the challenge of simultaneously strengthening Europe's military deterrence while significant energy revenues continue flowing to Moscow.
The European Union has adopted legislation to phase out Russian gas imports in stages, with a ban on Russian liquefied natural gas under long-term contracts taking effect on Jan. 1, 2027, and a ban on Russian pipeline gas under long-term contracts following on Sept. 30, 2027.
However, pipeline gas imports from Russia have fallen sharply since 2022, while Russian liquefied natural gas has remained a significant source of supply for several European countries.
European Commission spokesperson Anna-Kaisa Itkonen said the increase in liquefied natural gas purchases likely reflected "frontloaded deliveries and adjustments to contractual arrangements ahead of tighter restrictions," noting that the ban on new Russian gas contracts only took effect in March.
The commission also said market disruptions following the closure of the Strait of Hormuz prompted efforts to maximize alternative liquefied natural gas supplies, and that restrictions on Russian liquefied natural gas transshipment may have resulted in more cargoes remaining within the European Union market.
The data illustrate the strategic challenges of unwinding decades of dependence on Russian energy while maintaining stable supplies for European consumers.
Continued liquefied natural gas purchases provide Russia with billions of dollars in export revenue at a time when the U.S. and its allies have sought to squeeze Moscow's energy earnings in an effort to limit the Kremlin's ability to sustain its war in Ukraine.
EU foreign ministers recently approved another round of sanctions targeting Russia's military-industrial complex and "curb[ing] Russia's energy revenues" by tightening restrictions on the country's shadow fleet and the networks that help export its oil.
Spain, one of Europe's largest importers of Russian liquefied natural gas, has emerged as a focal point in the debate over the bloc's planned phaseout, with the head of the Port of Bilbao urging Brussels to delay its 2027 ban on Russian liquefied natural gas imports.
