Britain exempts Korea's Sakhalin II LNG imports from Russia sanctions

The industry ministry said Friday that Britain has exempted South Korea's long-term imports of Sakhalin II liquefied natural gas from sanctions on Russia.

The waiver covers LNG produced by the Sakhalin II project and imported under contracts signed before June 17, 2025, and runs until March 31, 2028, when the contract ends.

Korea Gas Corp. has been taking 1.5 million tons of LNG a year from the project under a contract that started in April 2008 and expires in March 2028.

The exemption follows months of government lobbying in Brussels and London. The European Union recognized an exemption for Korea's existing Russian LNG contracts on July 23, but because British insurers also cover Sakhalin II shipments, the EU measure alone did not fully remove the constraints. The issue was raised as a key economic and trade matter at a Korea-EU summit in Brussels on June 10, and the government kept making its case through senior-level meetings and working-level talks, including a video meeting of the two countries' trade ministers on Sept. 11.

The British measure means British companies can continue to provide shipping and insurance services for Sakhalin II LNG. The ministry said it will check the details of the exemption so it is carried out smoothly in practice and will keep managing the volumes so they arrive without disruption until the contract expires.