As of April 25, no European utility, trader, or terminal can take delivery of Russian liquefied natural gas (LNG) cargo bought on a short-term basis. This is the beginning of a hard phaseout that will fully ban Russian LNG imports in 2027.

The timing of this ban exacerbates Europe’s present energy woes. Nearly 20% of global LNG exports are prevented from entering global markets by Iran’s effective closure of the Strait of Hormuz. Additionally, Qatar, one of Europe’s other major LNG suppliers, suffered a 17% decline in its export capacity after an Iranian strike damaged the Ras Laffan export terminal.