Qatar has warned that it will stop exporting gas to the European Union if EU countries impose fines under recently adopted legislation.
Qatar’s Energy Minister, Saad Sherida Al-Kaabi, made this statement in an interview with the Financial Times. The new EU directive on corporate sustainability due diligence, which came into effect in July, allows companies to be fined up to 5% of their annual global revenue if their leadership fails to address human rights or environmental issues.
Qatar has become a key supplier of liquefied natural gas (LNG) to Europe as EU countries reduce their dependence on Russian energy resources following the outbreak of the war in Ukraine. The directive has been criticized both within the EU and beyond.
EU countries are required to incorporate the new rules into national legislation by 2026, and they will begin to apply to companies in 2027, with gradual implementation over the next three to five years after the directive comes into force.
This directive is part of a broader EU strategy aimed at achieving net-zero emissions by 2050. QatarEnergy, the state-owned energy giant, has signed long-term LNG supply contracts with Germany, France, Italy, and the Netherlands.
