The European Commission (EC) announced on Tuesday, the 6th of May, that it will propose measures next month to phase out Russian gas and LNG imports into the European Union (EU) by the end of 2027, reports Reuters.
The EU pledged to end its decades-long energy relationship with former major gas supplier Russia after Moscow’s full-scale invasion of Ukraine.
The EU plans to cut Russian energy by banning new Russian gas and LNG deals and ending spot contracts by the end of 2025 and long-term contracts by 2027.
Under the plan, Slovakia and Hungary, which receive Russian gas supplies, must draw up plans to stop using it by 2027.
The EU said new gas projects from countries such as the US and Qatar, starting in 2026, would help replace Russian gas without significantly increasing prices. The EU also plans to make greater use of renewable energy sources.
“Since February 2022, we have actually spent more money buying fossil fuels from Russia than we have provided aid to Ukraine,” said EU Energy Commissioner Dan Jorgensen. “Obviously, this will not stay.”
The US is urging Russia to conclude a peace agreement with Ukraine, which, if reached, could open the door to Russian energy again. But while some EU industry leaders have expressed support for the return of Russian gas, Jorgensen said that even in the event of a peace agreement, it would be unwise to rely on Russian imports again.
Kremlin spokesman Dmitry Peskov said that abandoning Russian energy was contrary to the EU’s own interests.
“They are reducing the competitive environment by choosing more expensive products from the US and other countries. One can only hope that the next generation of European politicians will assess the situation more carefully,” Peskov said.
AROUND 19% OF EUROPEAN GAS STILL COMES FROM RUSSIA, DELIVERED VIA THE TURKSTREAM PIPELINE AND LNG SHIPMENTS. THIS COMPARES TO AROUND 45% UNTIL 2022.
Last year, the EU imported 32 bcm of Russian pipeline gas and 20 bcm of LNG. Overall, two thirds of all imports were purchased through long-term contracts, while the rest were bought through spot purchases without a contract.
Brussels has indicated its willingness to buy more US LNG to replace the volume of Russian LNG that President Donald Trump has requested from the EU to reduce its trade surplus with the US.
New EU legislative proposals must be approved by the European Parliament and a majority of EU countries.
The EU has imposed sanctions on Russian imports of coal and most oil, but not gas, because Slovakia and Hungary oppose them and argue that a switch to alternative supplies would raise energy prices.
The Commission did not specify what legal options it would use to ban Russian gas supplies. Jorgensen said the proposals would amount to “force majeure” – an unforeseen event that can release companies from contract performance.
However, lawyers have pointed out that this could prove difficult to use, as gas buyers could face fines or legal disputes. Many European companies have take-or-pay contracts with Gazprom, meaning they have to pay for most of their gas even if they do not want to take delivery.
There were no immediate comments from companies currently under long-term contracts for Russian gas supplies.
The EU also plans to propose a tax on imports of Russian enriched uranium.