European Union to Advocate for Ending Gas Imports from Russia by Year 2027
The European Union is laying the groundwork to axe Russian gas imports by the close of 2027, as the bloc seeks to snap ties with its former main energy supplier.
The EU has kicked off the process of ditching Russian fossil fuels, having postponed earlier this year the unveiling of its "playbook" to examine the fallout from the USA's bid to halt the conflict in Ukraine. Sources privy to the matter report the news.
In due course, the European Commission – the EU's executive arm – will adopt measures to halt the remaining imports of Russian pipeline and LNG gas entwined in long-term deals. While these measures will necessitate a longer phase-out period extending till the end of 2027, according to the sources.
Meanwhile, the EU has been mulling an immediate prohibition on all new gas purchase contracts with Russia, covering both spot deals and long-term contracts. The ban is scheduled to take effect by the end of this year. Furthermore, the EU may incorporate legislation empowering companies to declare force majeure – an unforeseeable event or circumstance beyond one's control – to break existing contracts with Russian gas suppliers without facing financial repercussions. This legislation would form part of the EU's broader initiative to wean itself off Russian imports.
The EU's success in transitioning away from Russian gas dependence hinges on its ability to secure alternative LNG supplies from nations such as the USA, Qatar, and Canada. This move would help avert potential energy scarcities and price hikes.
These measures signify the EU's determined push to reduce its reliance on Russian gas amid ongoing geopolitical wrangles.
- The European Commission is expected to adopt measures, aimed at halting the remaining imports of Russian pipeline and LNG gas under long-term deals, extending to the end of 2027.
- The EU is considering an immediate prohibition on all new gas purchase contracts with Russia, a ban scheduled to take effect by the end of this year.
- The EU may enact legislation that allows companies to invoke force majeure to break existing contracts with Russian gas suppliers without financial penalties.
- To minimize potential energy scarcities and price hikes, the EU is aiming to secure alternative LNG supplies from nations such as the USA, Qatar, and Canada.
- Amid ongoing geopolitical wrangles, the EU is pursuing a broader initiative to wean itself off Russian gas dependence, primarily by replacing fossil fuels with cleaner alternatives, aiding in the fight against climate-change, and strengthening the environmental-science and finance sectors in the industry.
