Dutch government unable to legally stop import of Russian gas

The Dutch government has been unable to fulfill its commitment to stop importing gas from Russia. A long-term contract for liquefied natural gas (LNG) between the French energy group TotalEnergies and a Russian supplier is an obstacle to altogether ceasing import of the fuel, Bloomberg news agency reports based on interviews with anonymous sources.

The Netherlands stopped signing new contracts for LNG from Russia and was working on phasing phasing out its old contracts. However, the government cannot entirely stop importing Russian LNG as they legally cannot end agreements between private companies.

TotalEnergies entered into an agreement in 2018 for Russian gas supplied by Yamal LNG, the gas field operator in northwestern Siberia. Part of that cargo goes to the Netherlands. The deal accounts for approximately 10 percent of Dutch LNG imports. According to shipping data from Bloomberg, the Netherlands typically receives one shipment per month from Russia. Spokespeople for TotalEnergies and the Dutch Ministry of Economic Affairs and Climate Policy declined to comment to Bloomberg.

Yamal LNG is primarily controlled by the Russian company, Novatek PJSC, in which TotalEnergies and China National Petroleum Corp. have a minority share. TotalEnergies CEO Patrick Pouyanné explained in September of last year that the company would continue to ship LNG from Russia as long as there are no sanctions. The contract with the French company runs until 2032.

This problematic situation highlights how difficult it is for Europe to ultimately reduce its energy dependence on Moscow since the war in Ukraine, Bloomberg noted. The region has made significant strides in finding alternatives to gas from Russia. Still, the country remains one of the largest suppliers of LNG to Europe due to the contractual obligations between private companies.