Sweden may block Russian LNG if Hungary scuppers EU sanctions

Sweden is looking at ways to unilaterally block imports of Russian liquefied natural gas if Hungary stops or succeeds in watering down the European Union’s proposed latest sanctions on Moscow.

EU member states are discussing sanctions targeting key Russian LNG projects, as well as a ban on using the bloc’s ports to re-export supplies destined for third countries, as part of an effort to limit the Kremlin’s ability to generate revenues from the fossil fuel. Hungary has opposed the package and sanctions require the unanimity of the EU’s 27 member states.

“If the sanctions package doesn’t fit its purpose we are prepared to navigate on our own,” Swedish Energy Minister Ebba Busch said in an interview on the sidelines of a meeting of ministers in Brussels. “That’s not optimal, but we are looking into the possibility of finding a way to further stop and put sanctions on Russian imports, specifically LNG.”

Busch didn’t elaborate on how exactly the government would target energy imports from Russia, but said new measures that allow individual member states to effectively ban Russian LNG shipments without new sanctions were insufficient. The rules require countries to take into account the bloc’s energy security, while nations like Spain have said that imports could simply be shifted to other EU countries.

Germany and the Czech Republic have called for the EU to set up a high level working group on how to cut the remaining energy imports still coming from Russia after the dramatic reductions seen since the invasion of Ukraine.

While Sweden’s imports of Russian gas are small, any measures would further signal member states’ growing impatience over Hungary’s continued obstacles on aid for Ukraine and sanctions, but also highlight disunity within the bloc.

“The aim of this whole war on Russia’s side is to divide and conquer,” Busch said. “But Sweden will not wait if we don’t succeed with the 14th sanctions package.”

Busch said one way to win Hungary over on future energy sanctions, as well as the bloc’s Green Deal, would be for the EU to encourage fresh investments in the region’s embattled nuclear sector to help countries make up for the loss of Russian gas. She criticized the European Investment Bank for not doing more to provide concessional financing for the sector.

“The EIB needs to answer the question of why it’s effectively shooting the issue of European competitiveness into the ground,” she said. “Because that will be the effect.”