Qatar has warned the European Union that it may halt gas exports to the bloc if it proceeds with strict new sustainability regulations, escalating tensions over energy security and human rights policies.

In a letter addressed to the Belgian government on May 21, Qatar’s Energy Minister, Saad Al-Kaabi, stated that the Gulf nation could redirect its liquefied natural gas (LNG) supplies to other markets if the EU does not amend its Corporate Sustainability Due Diligence Directive (CSDDD). The law, passed in May 2024, requires large companies operating in the EU to monitor their supply chains for forced labor and environmental damage, with non-compliance penalties reaching up to 5% of global revenue.

Since Russia’s invasion of Ukraine in 2022, Qatar has been a crucial supplier of LNG to Europe, covering 12-14% of the EU’s gas needs. The potential loss of Qatari gas could further strain Europe’s energy market, which has already faced disruptions due to reduced Russian supplies.

In his letter, Al-Kaabi argued that the CSDDD creates an “unstable and unwelcoming” business environment. He stated:

“If no further changes are made to this directive, Qatar and QatarEnergy will have no choice but to seriously consider diverting LNG supplies to alternative markets outside the EU.”

This is not the first time Qatar has pushed back against the EU’s sustainability rules. Earlier this year, Al-Kaabi emphasized that Qatar would stop selling gas to Europe rather than risk financial penalties under the new law.

“If this means losing 5% of our revenue from EU sales, then we won’t sell to Europe,” he said. “Five percent of QatarEnergy’s revenue is 5% of Qatar’s national income—this is the people’s money. We cannot afford such losses.”