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 preventing the complete cessation of Russian gas imports, Bloomberg news agency reports, citing interviews with anonymous sources.

The Netherlands stopped signing new contracts for LNG from Russia and has been working to phase out existing contracts. However, the government cannot entirely stop importing Russian LNG because it legally cannot terminate agreements between private companies.

In 2018, TotalEnergies entered into an agreement for Russian gas supplied by Yamal LNG, the gas field operator in northwestern Siberia. Part of that cargo is sent 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, with TotalEnergies and China National Petroleum Corp. holding minority stakes. TotalEnergies CEO Patrick Pouyanné explained in September of last year that the company would continue shipping LNG from Russia as long as there are no sanctions. The contract with the French company runs until 2032.

This situation underscores the difficulty Europe faces in reducing its energy dependence on Moscow since the war in Ukraine, Bloomberg noted. While the region has made significant strides in finding alternatives to Russian gas, the country remains one of the largest suppliers of LNG to Europe due to the contractual obligations between private companies.