UK Extends South Korea's Russian LNG Sanctions Waiver to 2028

The United Kingdom has provided South Korea with a waiver from sanctions on long-term Russian liquefied natural gas (LNG) contracts, extending until March 2028. This move addresses concerns over potential disruptions to Korea’s energy supply.

According to the Ministry of Trade, Industry and Resources, the exemption applies to LNG imported from Russia’s Sakhalin-2 project under contracts signed before June 2022. Korea Gas Corp currently imports 1.5 million tons of LNG annually from this project.

The European Union and the UK had previously imposed restrictions on shipping and insurance services related to Russian LNG as part of sanctions. South Korea had secured an exemption from the EU in July but required an additional waiver from the UK due to its reliance on British insurance services for Sakhalin-2 LNG shipments.

Sakhalin-2 LNG accounts for about 3 percent of South Korea’s annual LNG imports, though it represents a larger share during the winter season.