25.04.24 / #LNG #embargo #Arctic_LNG-2 #climateaction / Campaign Updates

Open letter: Call to Germany to take leadership in sanctions against Russian LNG

Chancellor Olaf Scholz

Bundeskanzleramt

Willy-Brandt-Straße

110557 Berlin Germany

Copy:

Federal Minister for Economic Affairs and Climate Action

Robert Habeck

Scharnhorststraße 34-37

10115 Berlin

Dear Chancellor Olaf Scholz,

cc Minister Robert Habeck

Razom We Stand, in the context of ongoing discussions of 14th package of economic sanctions against Russia, calls on Germany and the European Union to impose a full ban on Russian liquefied natural gas (LNG), including LNG transshipment in ports of countries including Belgium, France and Spain. Furthermore, we call on the German government to advocate for the decision to impose a full ban and end all purchases of Russian LNG, through leadership and dialogues with the national governments of other EU member states.

Razom We Stand is a Ukrainian organisation, active internationally to end financial flows to the Russian fossil fuel industry and make Ukraine the first post-war country in the world to rebuild its infrastructure and economy based on renewable energy. In 2022 we led the Stand With Ukraine coalition of over 850 organisations from 60 countries, calling on world leaders to end the fossil fuel addiction that feeds Putin’s war machine. We are deeply committed to peace, security, and sustainability principles in Europe and beyond.

Our latest open letter address to G7 leaders, including to the Chancellor of Germany, with a call to plug energy sanctions loopholes against Russia and strengthen enforcement to end the war, was supported by more than 300 NGOs.

In addition to a full ban on Russian LNG, it’s critically important to minimise future loopholes via including personal sanctions against Leonid Mikhelson – a chairman of the Management Board and member of the Board of Directors of Novatek, Russia's second-largest gas producer. Russia declared a goal to achieve 20% of the global LNG market by 2035 from around 8% currently, and the leading role in achieving this goal belongs to Novatek.

On November 02, 2023, Arctic LNG 2 was placed on the U.S. Specially Designated Nationals List that imposed blocking sanctions on it. In April 2024 U.S. officials teased additional sanctions against the Russian oil and gas industry, including Novatek’s future projects. Sanctions have proven especially effective against Arctic LNG projects by blocking the delivery of ice-capable tankers. However, EU-based companies are still providing Russian LNG tankers with insurance services.

The ongoing Russian war in Ukraine has not only destabilised the region but also posed significant moral and strategic challenges to the international community. In light of these challenges, addressing the economic levers that can influence geopolitical stability is crucial. Establishing a fully enforced embargo on Russian LNG represents a significant aspect of this, as Russia is the 4th largest LNG exporter in the world, accounting for approximately 8% of the global supply. While Germany no longer imports Russian directly, according to Reuters, it could be receiving as much as 13.7% of its gas from Russia via neighbouring Belgium and the Netherlands. Along with other European nations, Germany is a notable consumer of LNG, which underscores the potential impact of German economic policies on global energy markets.

Success in LNG export expansion plans would give Russia, after having launched a cruel and destabilising war in Europe, a strong position in the global LNG market. It would be a stunning and tragic outcome, giving Putin critical leverage in energy markets, as he sought to do with Nordstream 1 and 2. Since February 24, 2022, Russia has amassed more Germany’s leadership role within the European Union uniquely positions it to initiate such impactful measures. I recognise the strong than $600 billion in profits from fossil fuel exports and is rushing to develop new Siberian and Arctic fields. If international sanctions on Russia’s fossil fuel industry are maintained and rigorously enforced, the International Energy Agency projects that the Kremlin’s profits from oil and gas could plummet by 40 to 50 per cent by 2030.

Germany’s leadership role within the European Union uniquely positions it to initiate such impactful measures. I recognise the strong German efforts in reducing dependency on Russian energy resources, and also the EU has demonstrated further success in reducing the 40% share of Russian pipeline gas in 2022 to 5% in 2024. This remarkable success must be extended to reducing and further eliminating consumption of Russian LNG so that Germany’s ongoing transition to renewable energy sources can be accelerated, mitigating the impact of these sanctions on European energy security and defeating the Russian aggressor. Furthermore, by imposing sanctions, Germany would not only foster a move towards greater energy independence but also set a precedent for sustainable and responsible energy consumption on a global scale.

I am hopeful that under your leadership, Germany will continue to exemplify resilience and righteousness. I look forward to your actions in this critical matter and am eager to see Germany lead by example in championing Ukrainian, European, and global peace and environmental sustainability.

Given the considerations mentioned above, we reiterate our call for immediate and decisive sanctions against all purchases of Russian LNG, which is currently providing finance to Putin’s war chest. We also welcome strong cooperation with the US and G7 governments in securing rigorous enforcement of sanctions against Russian LNG, including a full import ban in the EU, together with a transshipment ban for global supplies from Yamal LNG and complete blocking of the Arctic LNG 2 project.

Thank you for considering this urgent appeal. I trust in your commitment to helping Ukraine to win, and supporting global peace and justice.

Sincerely,

Dr. Svitlana Romanko

Founder and Director

Razom We Stand

 

svitlana@razomwestand.org

70 Sichovykh Striltsiv

Ivano-Frankivsk 78018

Ukraine