The EU plans to launch a full ban on Russian gas on Tuesday, with a roadmap to gradually phase out existing contracts by 2027.
Three EU officials indicated that the EU will announce a plan on Tuesday to prohibit new natural gas deals with Russia by the end of this year and gradually phase out existing contracts signed with Moscow by the end of 2027.
Three European Union officials have revealed that the European Commission plans to introduce a proposal on Tuesday that aims to prohibit the signing of new natural gas import contracts with Russia after the end of this year, and to gradually phase out existing Russian contracts by the end of 2027.
After the 2022 Russia-Ukraine conflict, the region set a non-binding goal to end imports of Russian fossil fuels by 2027.
Officials said the European Commission's plan includes a commitment to propose a ban on signing new Russian natural gas import contracts and spot contracts by the end of 2025 by June.
They also said that the European Commission will propose a legislative suggestion to prohibit the import of Russian natural gas and liquefied natural gas under existing contracts by the end of 2027. These officials wished to discuss these confidential plans anonymously, which could still be subject to change before being announced. These legislative suggestions will need to be approved by a reinforced majority of the European Parliament and EU member states.
The EU has imposed sanctions on Russian coal and maritime oil transport, but has not yet imposed sanctions on natural gas due to opposition from Slovakia and Hungary. Slovakia and Hungary receive Russian pipeline natural gas and have stated that switching to other suppliers will increase energy prices. Sanctions require unanimous approval from all 27 EU countries.
Approximately 19% of Europe's natural gas still comes from Russia, through the Turkish Stream pipeline and liquefied natural gas transport. This is much lower than the approximately 40% supplied by Russia before 2022. However, European buyers still have "take-or-pay" contracts with the Russian gas giant Gazprom, requiring buyers who refuse to take gas to pay for a significant portion of their contract amount. The European Commission has been evaluating legal options to allow European companies to terminate existing Russian gas contracts without facing financial penalties.
EU officials did not specify how Brussels intends to accomplish this. Lawyers say that it would be difficult to invoke "force majeure" to exit these contracts, and buyers may face fines or arbitration as a result.
Data shows that about 31% of Europe's liquefied natural gas purchased from Russia last year was from uncontracted "spot" purchases.
As the EU seeks to cut off its energy ties with Russia that have lasted for decades, the European Commission has expressed willingness to buy more American liquefied natural gas, a measure requested by former President Trump to reduce the EU's trade surplus with the United States.
The Commission is also concerned about energy prices and states that any measures limiting Russian energy imports must inflict more harm on Russia than on the EU, taking into account the impact on fuel costs.
The United States is pushing for a peaceful agreement between Russia and Ukraine, which, if reached, could open the door for Russian energy and ease sanctions. The European Commission initially planned to release its roadmap in March, but has partially delayed it due to uncertainties in the current situation.
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