Reuters quoted a senior European Union (EU) official as saying that the EU intends to ban companies from signing new contracts to buy Russian gas and fossil fuels from Russia, a tough move to gradually cut off dependence on Russian energy.
Not stopping there, the European Commission (EC) is also studying legal options to help European businesses cancel their current gas contracts with Russia without having to pay a penalty.
The new contract ban plan is being drafted by the EC into a detailed roadmap, expected to be announced on June 6. The ban could be introduced as a commercial measure, prohibiting EU companies from signing new contracts with Russian energy suppliers, especially targeting transactions to buy liquefied natural gas (LNG) from Russia on the spot market.
Although gas volumes from Russian pipelines to Europe have fallen sharply since Moscow launched its military campaign in Ukraine in 2022, EU LNG imports from Russia have increased last year. As of 2024, Russia still accounts for about 19% of total gas and LNG supplies to the EU.
One note is that the new ban will not be subject to hoi, but will only prevent new contracts. At the same time, the EC is also reviewing legal mechanisms for companies to cit "irresistible" in order to withdraw from gas contracts with Russia without being fined.
However, given that some member states still opposed imposing direct sanctions on Russian gas, the EC must calculate carefully. A spokesperson for the Commission said that any measures to limit energy imports from Russia should ensure that Moscow suffers greater losses than the losses the EU has suffered, and not seriously affect energy security and prices in the bloc.
After announcing the roadmap, the EC will hold consultations with member states and European businesses before deciding whether to submit the bill to the European Parliament or not. If the process is promoted, there needs to be a majority majority majority in the EU to issue new regulations.
