From Euractiv
The United Kingdom will take direct delivery of Russian gas for the first time this month, after fears of a winter supply crisis pushed prices up. The deal is controversial because the provider is a Russian gas project that is the subject of US sanctions against Moscow.
After Russian President Vladimir Putin opened the €22bn Yamal Liquefied Natural Gas (LNG) plant in the Arctic last week, one of the project’s first customers is set to be the UK and a consignment is currently heading the way of an import terminal on the island’s southeast coast.
Putin, who personally pushed the button to start filling the tanker, said the Yamal station is “an extremely important project that ensures the future of Russia and the future of its economy”.
Energy prices have increased in Britain over the last few days following the closure of a North Sea pipeline due to damage and an explosion at a gas terminal in Austria, which even led Italy to briefly declare a state of emergency.
But the company providing the gas, Novatek, was a target of US sanctions levied against Russian companies due to Moscow’s involvement in the 2014 annexation of Crimea. UK and EU sanctions do not directly target the LNG provider but do restrict access to financing instruments.
Novatek has managed to circumvent the penalties through some creative accounting and by turning to Chinese investors for a large loan. French energy firm Total is also a partner on the project and has dubbed Yamal LNG plant “the gas that came in from the cold”.
Importing gas directly from Russia is a decision that will raise eyebrows, given the UK’s stance on Moscow and Ukraine. UK Prime Minister Theresa May has recently accused Russia of interfering in elections and looking to “weaponise information.”
