EU Considers Banning Russian Energy Contracts

The European Commission is evaluating legal tools to prohibit EU firms from entering new contracts for Russian fossil fuels. It explores ways to lawfully terminate existing contracts due to Russia's Ukraine invasion. A roadmap and subsequent legislative proposals may follow, emphasizing EU energy security.

The European Commission is considering legislation to prevent firms within the EU from signing new contracts for Russian fossil fuels, according to a senior EU official. The Commission is also exploring legal avenues for EU companies to terminate existing contracts with Russia without incurring penalties.

Some EU member states oppose sanctions on Russian gas completely, prompting the Commission to seek other methods to expedite reducing Europe's dependence on Russian energy. A plan outlining potential strategies is expected on May 6, which may include trade measures to ban new contracts for Russian fuel.

The initiative aims to curtail European companies' spot purchases of Russian liquefied natural gas (LNG), despite increased imports last year following Russia's invasion of Ukraine. Notably, Russia still supplied 19% of the EU's total gas and LNG in 2024. The Commission may propose legislation for these measures, requiring approval from the European Parliament and EU member states.

(With inputs from agencies.)