President Lee Welcomes News of South Korean Companies Exempted from EU Sanctions on Russian LNG

"Explained the Need for an Exception at the Summit, Committed to Defending National Interests"
"Expected to Greatly Benefit the Korean Economy"

President Lee Jae-myung has personally announced that Korean companies have been granted an exemption from the European Union (EU)’s sanctions against Russia, emphasizing this as a diplomatic achievement.

President Lee Jae-myung is announcing the "San Francisco AI Declaration" at the "San Francisco AI Summit" held at The Midway in San Francisco, USA on the 24th (local time). 2026.7.25 Yonhap News Photo by Yonhap News

During his visit to San Francisco, President Lee wrote on his X account (formerly Twitter) on the 24th (local time), “I was pleased to hear the news that, regarding the EU’s LNG sanctions, our companies have been recognized as an exception to the sanctions.”

President Lee stated, “During my meeting with EU leaders last June, I explained the need for such an exception from the perspective of Korea’s energy security and urged them to pay close attention to this matter.” He added, “In a situation where energy supply uncertainty is increasing, I expect this will greatly benefit the daily lives of our people and the Korean economy,” and further said, “I will continue to do my utmost to protect the interests and well-being of our people through seamless responses.”

According to the Ministry of Trade, Industry and Energy, on the 23rd (local time), the EU Council adopted its 21st sanctions package against Russia, which included an exemption for Korea’s imports of Russian LNG. Under this measure, the EU decided not to apply sanctions related to transport, technical support, brokerage, finance, and other related services until March 31, 2028, but only for the transportation of LNG produced from Russia’s Sakhalin II project to Korea and Japan.

Previously, in October of last year, the EU adopted its 19th sanctions package against Russia, which limited services provided by entities within the EU to Russian LNG exported to third countries. Korea Gas Corporation has been importing about 1.5 million tons of LNG annually under a long-term contract with the Sakhalin II LNG project from April 2008 to March 2028. Since insurance providers based in the EU and UK have been significantly involved in reinsurance for LNG transport vessels from this project, there were concerns that, if services were restricted, about 2 million tons of LNG (worth approximately 1.75 trillion won) could face disruptions during the remaining term of the contract.

This exemption was made possible by the Korea-EU summit held in Brussels, Belgium, on June 10. At that time, the issue was raised as a major economic and trade agenda item, and subsequent consultations between the two sides accelerated, leading to the inclusion of the exemption clause in the latest sanctions package, according to the Ministry of Trade, Industry and Energy. The Ministry assessed, “This outcome is the result of comprehensive discussions at the summit, high-level, and working-level meetings, including the Korea-EU summit,” adding, “It is a representative achievement of summit diplomacy, where core issues of our companies and the national economy raised at the summit have led to concrete institutional improvements.”

However, some challenges remain. While primary insurance for Sakhalin II LNG transport vessels is handled by Korean insurers, British insurers are also involved in reinsurance, making it necessary to secure a separate sanctions exemption from the UK.

Meanwhile, the EU Council’s latest sanctions package was reached after considerable disagreement among member states. In response to Greece’s request, a compromise was made to allow the transportation of Russian LNG to third countries for 12 months, but the volume will be capped at 2025 levels. Some parties have reportedly expressed opposition, viewing this as a relaxation of sanctions against Russia.

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