The European Commission's proposal last week to ban Russian LNG imports from 1 January 2027 has already triggered immediate market reactions, with traders betting on European gas price jumps and heightened scrutiny of cargo provenance. This acceleration of the policy timeline – targeting LNG that was previously exempt from broader Russian energy sanctions – is set to accelerate an ongoing rebalancing of global LNG flows, with Russian volumes increasingly diverted to Asia whilst European buyers seek alternative suppliers.
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