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The European Commission is working to create legal mechanisms that will allow EU companies not only to cancel existing contracts for the supply of Russian gas without penalties, but also to completely ban the conclusion of new agreements for the supply of fossil fuels from Russia. This was reported by a senior European Commission official in a commentary to Reuters.
An official roadmap detailing possible steps towards the final severance of energy ties with Russia is expected to be presented on 6 May. Work on the document is being conducted in confidence, and the initiative is seen as an alternative to direct sanctions, which are being blocked by a number of EU member states.
“We want to provide companies with legal ways to exit contracts without the risk of legal action or penalties for early termination,” the official said on condition of anonymity.
Despite the decline in gas imports from Russia through pipelines following the full-scale invasion of Ukraine, the volume of Russian liquefied natural gas (LNG) purchases in the EU increased in 2024, accounting for 19% of total gas and LNG imports in the bloc.
It is these “spot purchases” of Russian LNG that will be the main target of the bans currently being considered by the Commission. It is also planned to provide companies with a legal basis for invoking force majeure in connection with the war, which will allow them to withdraw from contracts without liabilities.
At the same time, the European Commission official noted that any energy restrictions should hit Russia’s economy harder than the EU’s and take into account the risks to energy security and price stability in the European market.
Once the roadmap is published, consultations with member state governments and businesses will begin. If specific legal instruments are selected, the EC will prepare legislative proposals, which will be subject to further approval by the European Parliament and the Council of the EU.
