EU Explores Options to Prohibit New Contracts for Russian Gas

The European Commission is currently assessing the possibility of introducing legislation that would prevent firms within the European Union from signing new contracts for Russian fossil fuels.

The Gaze reports on this with reference to Reuters.

This initiative is part of the EU's broader strategy to reduce its dependency on Russian energy sources, particularly liquefied natural gas (LNG). The proposed ban aims to curtail spot market purchases of Russian LNG, following a sharp decline in pipeline gas imports since Russia’s invasion of Ukraine in 2022. Despite the drop in pipeline gas deliveries, Russian LNG imports into the EU surged last year, accounting for 19% of the region's total gas and LNG supply in 2024.

The Commission is also considering legal pathways that would allow EU companies to exit existing Russian gas contracts without incurring penalties. However, the issue remains complex, as some member states have expressed strong opposition to imposing sanctions on Russian gas. In response, the Commission is exploring alternative methods to accelerate Europe's shift away from Russian energy.

The EU plans to outline these options in a "roadmap," set to be published on May 6. Any proposed measures will need to balance the impact on Moscow with the economic and energy security implications for the EU. After unveiling the roadmap, the Commission intends to consult with EU member states and companies before advancing any legislative proposals.

This approach reflects the EU’s ongoing efforts to navigate the geopolitical and economic challenges posed by its energy ties with Russia.

As The Gaze reported recently, the EU unveils plans to cut Russian energy imports in May.