Well this announcement immediately follows the EU trade deal which includes the EU’s commitment to purchase $750 billion in US LNG over next three years.
That has likely let Europe off the hook for 100% secondary sanctions over their Russian natural gas purchases.
Which in my mind is as solid a material step forcing Putin to negotiate realistically than even doubling military aid to Ukraine would have.
This gives Russias three major gas companies and Putin nine days to evaluate and weigh in on their final door being closed to the EU LNG markets.
Keep in mind that the reality of the world energy market has been that while supporting a war for Ukrainian freedom from the Dread Pirate Putin.
While all these politicians and pundits in Europe and the US have been bemoaning that Trump is a Russian stooge and will give Putin everything he wants in Ukraine.
Or Russias going to invade NATO next.
The EU has continued to purchased record amounts of LNG from Russia right through 2024. And of course the Biden administration did nothing to change that trajectory by boosting US LNG production and exports.
Bloc received 16.5mn tonnes of liquefied natural gas by mid-December despite efforts to reduce supplies from Russia
www.ft.com
These Duplicitous hypocritical bastards continuing to insist Ukraine be defended at all cost from the totalitarian butcher Putin.
100,000’s dead, their countries indebted even more, they’re militaries depleted.
Now you can argue that the EU had no choice from where to replace Russian LNG.
Then that is fully on the last US administration and the climate change eco-terrorist lobby.
Or simply that no one in power on either side of the Atlantic thought it might be a good idea to change the rules.
Or worse yet, that thus far leaders and bankers in NATO and Russia alike regarded the war as their own personal cash cow.
Obviously up until now no one of significance viewed trade negotiations, tariffs, or changing the world energy market balance sheet as a viable means of bringing a never ending war with 100,000’s dead to a conclusion.
So we shall see….
What will be interesting is how the secondary tariffs affect China. The Ukrainian/Russian war is possibly one of the few things that has kept Chinas economic engine afloat these last three years.