EU explores legal paths to end long-term Russian gas deals
The European Commission is investigating potential legal options that would allow European companies to terminate their long-term gas contracts with Russia without incurring substantial penalties, reported the "Financial Times," citing three EU sources.
According to the newspaper, the EC is examining the contracts for importing Russian natural gas and considering the possibility of invoking the force majeure clause, which would permit European importers to break the contracts.
The difficulty is that import contracts are confidential and often vary from one another. The ongoing war in Ukraine as a basis for invoking the force majeure clause, which could enable contract termination, might not be legally sufficient, emphasized the source cited by the newspaper.
The withdrawal of EU importers from contracts for Russian gas is part of a broader plan, a "roadmap," to transition the EU away from Russian fossil fuels by 2027. This plan aims to make the EU independent of Russian gas supplies and to deprive the Kremlin of the revenue it uses to wage war against Ukraine.
EU countries paid Russia 24 billion dollars for oil and gas from February 2024 to February 2025, the British newspaper highlighted, citing calculations by the Centre for Research in Energy and Clean Air.
Currently, Russian gas accounts for 11 percent of the gas supplied to EU countries via pipelines, down from about 40 percent in 2022. Meanwhile, deliveries of Russian liquefied natural gas (LNG) have significantly increased over the past three years.
The EU has halted 90 percent of its oil imports from Russia and banned imports of Russian coal, but has not included Russian natural gas in this ban. Imports of this resource from Russia to Europe have increased by about 60 percent over the past three years, although they remain at their lowest level since 2022, "FT" reminded.
Initially, the EU "roadmap" was slated for publication in March, but it was withheld due to concerns that Hungary and Slovakia, which rely heavily on gas transported via pipelines from Russia to the EU, would block it. The government in Budapest threatened to reject the adoption of EU sanctions on Russian gas. A decision on this matter requires the unanimous consent of all 27 EU member states.
European Commission President Ursula von der Leyen told "FT" that the plan is expected to be released "in three to four weeks."
EU countries fear forcing companies to break contracts
Despite pressure from Brussels, EU countries fear forcing companies to terminate contracts with Russia for LNG supplies. They worry about rising liquefied gas prices, which could pose challenges for businesses dealing with high costs and geopolitical uncertainty.
The European Commission has authorized EU countries to prevent Russian and Belarusian operators from connecting to port infrastructure or transmitting gas through EU pipelines. However, governments believe this measure does not provide them with strong enough legal means to compel companies to break contracts.
The main EU ports receiving Russian LNG are located in France, Spain, and Belgium. Russia's Yamal LNG plant still maintains contracts with some of Europe's largest energy companies, including the British company Shell and the Spanish company Naturgy, "FT" emphasized.
