Spain Urges LNG Importers To Cut Ties With Russia

Spain, the largest European importer of liquefied natural gas (LNG) from Russia, is urging importers not to sign new agreements with Moscow as part of its efforts to limit revenue supporting the Kremlin's war efforts.

LNG importers in Spain received a letter from the government, requesting companies to refrain from entering new contracts with Russia, according to sources familiar with the matter. The request is non-binding, as there are no sanctions in place, and applies only to new contracts, the sources, who spoke anonymously, said.

Since Russia’s invasion of Ukraine last year, Europe’s pipeline gas flows from Russia have dropped to historic lows. However, to compensate for this deficit, LNG shipments from across the globe have surged — including those from Russia.

Spain has nearly doubled its imports of Russian LNG since the start of the war, highlighting Europe’s ongoing dependence on Moscow for energy.

On March 14, Spanish Deputy Prime Minister Teresa Ribera, responsible for energy policy, sent a letter to companies including Naturgy Energy Group SA, Repsol SA, TotalEnergies SE, Axpo Holding AG, Shell Energy, Enagás SA, Met Energy, Enet Energy, Energias de Portugal SA, Compañía Española de Petroleos SA, and BP Gas and Power Iberia. The letter, seen by Bloomberg News, did not explicitly mention spot contracts but made a general appeal to "accelerate the diversification of LNG supply and phase out imports from Russia." Ribera confirmed via email that she sent the letter 10 days prior and several companies had responded.

Axpo, Repsol, and Enagás responded, stating they are not purchasing LNG from Russia, according to a ministry spokesperson. "We can confirm that Axpo has not imported any Russian LNG cargoes into Spain since the beginning of the war in Ukraine," an Axpo spokesperson said.

Earlier this month, European Union Energy Commissioner Kadri Simson urged companies not to renew long-term contracts for Russian LNG once current agreements expire, though no specific measures were announced.

Spain remains the EU's top importer of Russian LNG this year, according to Bloomberg’s shipment tracking data. The country was forced to seek additional supplies last year after shipments from long-term gas supplier Algeria declined following a diplomatic dispute between the two nations.

Spain only imports Russian gas as LNG, with Naturgy Energy Group SA holding a 20-year contract to purchase fuel from the Yamal LNG project in the Arctic until 2038. The company declined to comment.

In January, the German government expressed its desire to curb imports of Russian LNG but did not specify how this would be achieved. So far, the EU has avoided discussing any regional-level ban on Russian LNG.