EU Weighs Gas Ban: Ending Dependence on Russian Fuels

The European Commission is exploring legal avenues to prohibit new EU contracts for Russian fossil fuels and allow existing agreements to be terminated sans penalties. Amid resistance to Russian gas sanctions, a roadmap detailing these options will be unveiled on May 6, aiming to reduce Europe's energy dependency.

The European Commission is considering legislative measures to prohibit firms in the EU from entering new contracts for Russian fossil fuels, a senior official disclosed on Tuesday.

Simultaneously, the Commission is evaluating legal possibilities that would enable EU companies to terminate existing gas contracts with Russia without incurring penalties. Given the reluctance of some member states to sanction Russian gas, the focus is on alternative strategies to diminish Europe's reliance on Russian energy, including a proposed 'roadmap' slated for release on May 6.

Discussions are underway about using EU trade measures to deter European companies from spot purchasing Russian LNG. While Russian pipeline gas imports have decreased post-Ukraine invasion, reliance on Russian LNG persists, comprising 19% of EU's 2024 gas supply. Officials emphasize any energy import restrictions should harm Moscow more than the EU, while safeguarding European energy security and pricing.

(With inputs from agencies.)