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EU readies ban on Russian gas imports by end of 2027

EU readies ban on Russian gas imports by end of 2027

FILE PHOTO: A model of a natural gas pipeline, a Euro banknote and a torn European Union flag are placed on a Russian flag in this illustration taken September 7, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The European Commission is set to propose on Tuesday a ban on EU imports of Russian gas and liquefied natural gas by the end of 2027, using legal measures to ensure the plan cannot be blocked by EU members Hungary and Slovakia.

The proposals will set out how the European Union plans to fix into law its vow to end decades-old energy relations with Europe’s former top gas supplier Russia, made after Moscow’s 2022 full-scale invasion of Ukraine.

An internal Commission summary of the upcoming proposal, seen by Reuters, said it would fix into law a ban on imports of Russian pipeline gas and LNG from January 1, 2026, with longer deadlines for certain contracts.

Short-term Russian gas deals signed before June 17, 2025 would have a one-year transition period, to June 17, 2026, it said.

Imports under existing long-term Russian contracts would then be banned from January 1, 2028 – effectively ending the EU’s use of Russian gas by this date, the summary said.

Companies including TotalEnergies and Spain’s Naturgy have Russian LNG contracts extending into the 2030s.

EU LNG terminals would also be gradually banned from providing services to Russian customers, and companies importing Russian gas would have to disclose information on their contracts to EU and national authorities, Reuters previously reported.

The plans could still change before they are published.

EU energy commissioner Dan Jorgensen said on Monday the measures were designed to be legally strong enough for companies to invoke the contractual clause of “force majeure” – an unforeseeable event – to break their Russian gas contracts.

“Since this will be a prohibition, a ban, the companies will not get into legal problems. This is force majeure, as it [would be] if it had been a sanction,” Jorgensen told reporters.

NO VETO

Slovakia and Hungary, which have sought to maintain close political ties to Russia, still import Russian gas via pipeline and say switching to alternatives would increase energy prices. They have vowed to block sanctions on Russian energy, which require unanimous approval from all EU countries, and have opposed the ban.

To get around this, the Commission’s proposals will use an EU legal basis that can be passed with support from a reinforced majority of countries and a majority of the European Parliament, EU officials said.

While most other EU countries have signalled support for the ban, officials said some importing countries have raised concerns about the risk to companies of financial penalties or arbitration for breaking contracts.

Around 19% of Europe’s gas still comes from Russia, via the TurkStream pipeline and LNG shipments – down from roughly 45% before 2022. Belgium, France, the Netherlands and Spain are among those that import Russian LNG.

“We fully support this plan in principle, with the aim of ensuring that we find the right solutions to provide maximum security for businesses,” French industry minister Marc Ferracci told reporters on Monday.

 

(Reporting by Kate Abnett)

 

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