EU grants exemption from sanctions on Russian LNG exports to South Korea

The European Union (EU) has decided not to exceptionally exempt South Korea from the relevant sanctions so that it can import liquefied natural gas (LNG) from Russia’s Sakhalin II project. The Ministry of Trade, Industry and Energy said on the 24th that the EU Council’s sanctions package against Russia includes an exemption related to South Korea’s LNG imports. As a result, Korea Gas Corporation will be able to bring Russian LNG into the country while receiving reinsurance, transportation support, and financerelated services from EUbased companies. This measure will apply until March 31, 2028, only in cases where LNG produced at the Sakhalin II project is transported to South Korea and Japan. The government expects this to allow a stable introduction of about 2 million tons of LNG during the remaining contract period. However, the UK was not included in this exemption, so the government plans to continue discussions while also requesting separate application from the UK side.