Reuters reported on April 22 that a senior official of the European Union (EU) said the European Commission (EC) is assessing the possibility of issuing a law to prohibit businesses in the bloc from signing new contracts to buy fossil fuels from Russia.
At the same time, the EC is also studying appropriate legal options to create conditions for businesses to unilaterally terminate existing gas contracts with Russia without being fined, for example by citing the irresistible provision.
Specific proposals are expected to be presented in the plan on May 6. After that, EC will organize consultations with member countries and business representatives.
If the EC decides to take these measures, the proposals could be converted into a bill and need to be approved by the European Parliament and the majority of member states, depending on the legal form chosen.
This is seen as a new step in the EU's efforts to end its dependence on energy from Russia - a goal that is increasingly Hampered by a number of member states declaring that they will opposing any plans to expand gas sanctions against Moscow.
Although gas transit through pipelines from Russia to the EU has decreased significantly since the Russia-Ukraine conflict broke out in 2022, the bloc has increased imports of Russian liquefied natural gas (LNG) from 2023. In 2024 alone, Russia will still supply about 19% of the total gas and LNG demand of the EU.
The ban on signing new contracts, if implemented, will mainly target Russian LNG purchases in the spot market, where transactions are often flexible and there are no long-term commitments like traditional contracts.
The European Commission stressed that any restrictions on Russian energy should be carefully considered, ensuring that Moscow causes greater losses than the EU, while not seriously affecting energy security or pushing up prices in Europe.
The EC has also been seen as seeking to extend sanctions against Russia without the absolute consent of all 27 member states, according to Bloomberg.
The main purpose of this plan is to overcome the objections of Hungary - a country that still maintains a pro-Russian stance. The sanctions now need to be extended every 6 months, with the next one expected in July.
If the extension goes smoothly, the EU will also continue to maintain other key measures such as freezing nearly 200 billion euros ($227 billion) in assets of the Russian Central Bank, as well as sanctions targeting hundreds of individuals, organizations and ships accused of supporting Moscow's military campaign in Ukraine.
