The European Union and the United States are engaged in active debates about introducing a new, 19th package of sanctions against Russia. European Commission President Ursula von der Leyen announced, following a conversation with former US President Donald Trump, that the announcement has been postponed. The package is expected to impose restrictions on cryptocurrencies, the banking sector, and the energy market, with accelerated plans to phase out fossil fuel imports from Russia now targeted for 2026.
Europe's energy market remains dependent on both Russian and other imported gas, particularly American LNG. Some EU members, such as Balkan countries, continue using gas supplied via Turkey, while Hungary and Slovakia have long-term agreements with Gazprom expiring in 2036. These countries formally avoid direct Russian gas purchases by replacing it with gas sourced from other EU countries at lower prices, achieved through complex swaps and supply agreements.
The main competitors in Europe’s LNG market are Russia and the US. American LNG is generally more expensive than Russian, incentivizing the US to exert political pressure on the EU to reduce Russian LNG purchases under the banner of sanctions. Oil remains another key issue. Although the EU is phasing out Russian seaborne oil, pipeline oil continues to flow to certain countries under special exemptions.
Looking ahead, the US and Ukraine share interests in reducing Russia’s energy revenues, which finance its war efforts. Further sanctions may expand to include additional restrictions on Russian LNG, oil, and petroleum products, potentially reshaping the European energy market.
