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EU Freezes Kazakh LPG at Border—Is This a New Trade War?

EU Freezes Kazakh LPG at Border—Is This a New Trade War?
photo: Edgar a secas / Flickr/Illustrative photo
29 / 01 / 2025

Hundreds of liquefied petroleum gas (LPG) rail tankers from Kazakhstan have been stranded at the Belarus-Poland border as European customs authorities tighten checks over fears of Russian sanctions evasion.

According to Oil and Gas of Kazakhstan. Facts and Comments on Telegram, over 100 rail tankers carrying LPG produced by Tengizchevroil (TCO) are currently halted at Brest-Central, Brest-East, and Baranovichi-Central stations in Belarus due to ongoing issues with Polish customs authorities. The main concern stems from fears that some of the shipments could be of Russian origin, potentially circumventing EU sanctions on Russian energy exports due to Russia's full-scale invasion of Ukraine.

Since the EU banned Russian LPG imports on 20 December 2023, authorities have increased scrutiny on shipments from Kazakhstan, requesting additional documentation to verify the cargo's origin. Customs officials remain skeptical, given Kazakhstan’s close trade ties with Russia, and are reportedly concerned that Russian gas is being re-exported through Kazakhstan to bypass sanctions.

Reputational Damage and Logistical Disruptions

As Belsat notes, Kazakhstan's reputation in the global energy sector has taken a hit as a result of growing EU skepticism about its role in enforcing sanctions. While the country maintains that its LPG exports are independent of Russian supply chains, European regulators remain unconvinced.

According to RailFreight, the ongoing customs delays are also creating ripple effects in Kazakhstan’s rail logistics. With tankers immobilized at the border, a shortage of railcars is developing, disrupting regular LPG shipments from TCO's production sites. Business Online reports that industry experts warn that if the impasse continues, it could impact production schedules and further strain regional supply chains.

In an attempt to resolve the crisis, the Kazakh Embassy in Brussels has engaged in diplomatic talks with the EU Commissioner for Sanctions Enforcement. However, negotiations have yielded little progress so far. Despite efforts to provide transparent documentation proving the non-Russian origin of the LPG, European customs authorities continue to request additional verification.

EU Sanctions on Russian LPG and Their Impact

The EU’s ban on Russian LPG imports, enacted in December 2023, was part of broader measures aimed at reducing Moscow’s energy revenues, which exceeded EUR 1 billion annually from this sector. The embargo covers liquefied propane, butane, ethylene, propylene, butylene, and butadiene, cutting off nearly all Russian LPG exports to Europe. According to Business Online, as a result, Russian LPG exports to Europe fell by 27% between January and November 2024, while total Russian LPG exports dropped by 7% to 3 million tons. To compensate, Russian suppliers increased exports to Turkey and Asia by 45%, reaching 1.2 million tons over nine months.

The EU has since intensified enforcement measures, increasing scrutiny on shipments from countries like Kazakhstan, Uzbekistan, and Turkmenistan, which have long-standing energy trade relationships with Russia.

What Happens Next?

For now, the Kazakh LPG tankers remain stranded at the Belarus-Poland border, with no clear timeline for resolution. Unless a breakthrough in diplomatic negotiations occurs, shipments could face prolonged delays, affecting Kazakhstan’s energy export strategy.

Source: RailFreight; Oil and Gas of Kazakhstan. Facts and Comments; Belsat; Business Online

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