Russian LNG revenue for federal budget reaches 60 million euros per day
The European Union recorded a 14 percent increase in Russian liquefied natural gas imports in June compared with the same month last year, according to data from the Centre for Research on Energy and Clean Air cited by the German weekly Welt am Sonntag. The rise occurs while Brussels maintains a stated goal of eliminating dependence on Russian energy.
France accounted for the sharpest monthly jump. The Montoir-de-Bretagne terminal received four times more Russian LNG in June than in May. Spain continues to source more than 27 percent of its national gas consumption from Russia. Hungary, Slovakia and Greece also remain steady buyers despite the broader sanctions framework.
The mechanism is straightforward: most Russian LNG enters the EU under long-term supply contracts that predate the current sanctions regime. Breaking those contracts would expose European buyers to heavy penalties. In addition, the global LNG market allows cargoes to change hands multiple times before final delivery, making origin tracking difficult once the gas leaves the liquefaction plant.
Russia earns roughly 60 million euros per day from these flows, providing a stable revenue stream for the federal budget. Macroeconomist Artem Loginov told Pravda.Ru that Europe is caught between political ambition and physical reality: the pipeline infrastructure built over decades cannot be replaced in months, and when Russian LNG is available at competitive terms, buyers use it to avoid domestic energy shortfalls.
Artem Loginov, macroeconomist: "Europe found itself in a trap between political ambitions and physical reality. Rebuilding gas infrastructure that was created over decades is impossible in a few months. In the end the market dictates its conditions: if Russian LNG is available and allows a country to avoid an energy crisis, it will be bought even in defiance of declarations."
The core constraint is the time gap between the political decision to phase out Russian gas and the physical construction of alternative import capacity. New regasification terminals and pipeline interconnections require years of permitting, financing and construction. Until that infrastructure exists, the EU's own data show Russian LNG continuing to balance the European gas system.
Source: This article was adapted from an original Russian-language publication by Pravda.Ru.
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