EU Weighs Ban on New Russian Gas Contracts Amid Drive to Reduce Energy Dependency

by EUToday Correspondents

The European Commission is considering new legal measures to prevent companies within the European Union from entering into fresh contracts for Russian fossil fuels, as part of a broader strategy to curtail Europe’s longstanding reliance on Russian energy imports. A senior EU official, speaking on condition of anonymity to Reuters, confirmed the plans on Tuesday.

According to the official, the Commission is also examining mechanisms that would permit EU-based firms to terminate existing gas supply contracts with Russian entities without incurring financial penalties. These developments form part of a roadmap the Commission intends to publish on 6 May, which will outline potential steps to accelerate the bloc’s disengagement from Russian energy supplies.

The proposals are being explored as formal EU-wide sanctions on Russian gas remain unlikely due to opposition from certain member states. Instead, the Commission is focusing on alternative regulatory instruments – including trade-related measures – that could achieve similar outcomes without requiring unanimous agreement.

A key objective of the proposed restrictions is to halt the purchase of Russian liquefied natural gas (LNG) on the spot market. While pipeline gas deliveries from Russia have significantly declined since the onset of Moscow’s full-scale invasion of Ukraine in February 2022, EU imports of Russian LNG increased during 2024. Russia still accounted for 19% of the EU’s combined gas and LNG supply last year.

The potential legislation would aim to prohibit EU companies from signing new agreements for Russian fossil fuels, including LNG. It would not, at least initially, impose a retrospective ban on existing contracts. However, the Commission is exploring the possibility of allowing companies to invoke force majeure in order to lawfully exit those agreements. Under such circumstances, firms could argue that geopolitical developments constitute unforeseeable and extraordinary events preventing contractual performance, thus avoiding liability for damages or penalties.

No official comment has yet been provided by the European Commission. However, the institution has previously maintained that any energy-related restrictions must be carefully calibrated to impose greater costs on Russia than on the EU, while preserving the bloc’s energy security and price stability.

Should the Commission proceed with a legislative initiative following the publication of its roadmap, the process would involve consultations with both member states and affected industries. Depending on the legal instrument selected, formal adoption could require approval from the European Parliament and a qualified majority of EU countries under the bloc’s decision-making rules.

The initiative represents a continuation of the EU’s efforts to reorient its energy mix in response to geopolitical risks. Since 2022, the bloc has pursued a diversification strategy encompassing increased imports from non-Russian sources, investments in renewable energy, and the expansion of LNG infrastructure across member states.

Despite these efforts, some EU countries remain more exposed than others to Russian gas, and have expressed concerns over the potential economic and industrial impacts of abrupt supply changes. The Commission’s roadmap is expected to address these concerns, potentially including proposals for financial or regulatory support to ease the transition for affected sectors.

Read also:

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