Ministry of Trade: "EU Grants Exemption from Sanctions on Russian LNG Exports to Korea"

Exemption Granted Until March 2028

"Stable Import of Korea Gas Corporation's Long-Term Contract Volumes"

The European Union (EU) has decided to grant an exemption from relevant sanctions for Korea’s imports of liquefied natural gas (LNG) from Russia's Sakhalin II project.

According to the Ministry of Trade, Industry and Energy on July 24, the EU Council adopted the "21st Sanctions Package against Russia," which includes an exemption for Korea regarding the import of Russian LNG, on July 23 (local time).

The EU has decided not to apply service restrictions—such as those on transportation, technical support, brokerage, and finance—until March 31, 2028, for LNG produced from the Sakhalin II project when it is transported to Korea and Japan.

As a result, Korea Gas Corporation will be able to import Russian LNG domestically while receiving services such as reinsurance from EU companies. Previously, in its 19th sanctions package in October last year, the EU banned its companies from providing services for Russian LNG exported to third countries. If the sanctions were to take effect, Korea Gas Corporation would have faced difficulties importing Russian LNG starting from January next year.

The government has been requesting that the EU apply an exemption, explaining through various channels the impact EU sanctions against Russia would have on Korea’s existing long-term contracts and domestic LNG supply. The Ministry of Trade, Industry and Energy explained that, as this issue became a key topic during the Korea-EU summit held in Brussels, Belgium on June 10 last month, consultations between the two sides progressed significantly.

With this measure, insurance and reinsurance companies within the EU will be able to provide services related to Sakhalin II LNG imported to Korea. The government expects that, during the remaining contract period, approximately 2 million tons of LNG will be imported stably.

However, this measure does not apply to the United Kingdom, which is not an EU member state. The government continues to request a similar exemption from the UK and plans to resolve the related risks as soon as possible through consultations with the UK government and relevant agencies.

This content was produced with the assistance of AI translation services.