European gas prices rise after eu sanctions on russia’s energy sector

European natural gas futures rose 2% to €32.4 per megawatt-hour after the European Union approved a new sanctions package targeting Russia’s energy infrastructure, aligning with a renewed U.S. push to constrain Moscow’s war capabilities in Ukraine.

The measures include a ban on Russian LNG imports starting in 2027, stricter limits on dealings with two major Russian oil companies, and sanctions on 117 “shadow fleet” vessels allegedly used to circumvent previous restrictions.

The EU’s action comes after the U.S. imposed sanctions on Rosneft and Lukoil following the cancellation of a planned Trump–Putin summit, and mirrors similar steps recently taken by the U.K.

Despite the geopolitical tensions, European gas prices remain within their recent trading range, as markets await clearer indicators of winter demand. Abundant supplies and robust storage levels continue to cushion the impact of colder weather.

As of now, EU gas storage facilities are 82.8% full, with Italy at 94.2%, France at 92.7%, and Germany at 75.4%, supported by steady LNG inflows and increased Russian gas purchases by China.