G7 leaders endorse ending significant dependency, transition away from Russia gas

G7 leaders have endorsed a pledge to pursue ending significant dependency and "to work on transitioning away from Russian gas imports as soon as possible" as part of efforts to restrict Russian energy revenues.

"We recognize that restricting Russian energy revenues is an essential part of our support to Ukraine and are pursuing to end significant dependency on, and to work on transitioning away from imports of Russian gas as soon as possible," the G7 leaders said in a communique issued at the G7 Apulia Summit in Italy June 14.

"In this context, we stress the important role that increased deliveries of LNG can play and acknowledge that investment in the sector can be appropriate in response to the current crisis and to address potential gas market shortfalls provoked by the crisis."

The wording on Russian gas imports and a role of LNG supplies in the G7 Apulia leaders' communique was unchanged from the G7 climate, energy and environment minister's communique issued in Torino April 30.

Both communiques reaffirm the G7's commitments made in the 2023 Hiroshima Leaders' Statement, highlighting a significant progress in reducing dependency on Russian fossil fuels.

This includes through energy savings and gas demand reduction in a manner consistent with Paris Commitments and addressing the global impact of Russia's war on energy supplies, gas prices and inflation, and people's lives, recognizing the primary need to accelerate the clean energy transition.

The G7 comprises Canada, France, Germany, Italy, Japan, the UK, the US and the EU.

Russian gas imports

In an interview with S&P Global Commodity Insights June 3, European Commissioner for Energy Kadri Simson said of the G7 Torino communique on Russian gas imports: "This agreement was achieved because everybody recognizes that Russian gas industry is sponsoring the war economy."

Some G7 members were "more dependent on Russian gas supplies than others," Simson said, adding that the EU has committed to stop Russian gas imports "at latest 2027."

The EU expects to finalize its 14th sanctions package against Russia in June, with measures targeting transshipments of Russian LNG as well as three LNG projects including Arctic LNG 2, Simson said.

"This 14th [sanctions package] is the first one, where we cover also partially LNG trade and specifically transshipments," Simson said.

Simson named the three LNG projects of Arctic LNG 2, Ust-Luga and Murmansk, when asked to specify Russian LNG projects being subject to the EU's proposed sanctions.

The EU, meanwhile, has also already reduced its imports of Russian gas and LNG since Russia invaded Ukraine in February 2022, with purchases falling from 155 Bcm in 2021 to 80 Bcm in 2022 and to just 43 Bcm last year.

However, a number of EU countries still import Russian pipeline gas -- including Austria, Slovakia, the Czech Republic and Italy -- while others import Russian LNG, such as Spain, France, the Netherlands and Belgium.

Russia last year was the third-biggest supplier of LNG to Japan, delivering some 6.1 million mt, according to finance ministry data, accounting for 9.3% of Japan's total LNG imports.

Deliveries were down compared with 6.9 million mt supplied in 2022, the data showed.