Source: EU considering options to prohibit new Russian gas contracts
A senior EU official revealed on Tuesday that the European Commission is considering whether it can legislate in order to prohibit firms from signing new contracts with Russian fossil fuels.
The senior official also added that the EU is working on legal options which would allow EU companies to terminate existing gas supply agreements with Russia without being penalized.
The Commission has been looking for other ways to reduce Europe's dependence on Russian energy, as some EU member states have pledged to block any EU sanction on Russian gas. The Commission plans to outline options in a "roadmap", due by May 6, that will help it achieve this.
The Commission is considering options, including EU trade sanctions, that could prevent European companies from signing new contracts with Russian fuel suppliers, according to the official who spoke on condition of anonymity.
This would reduce the amount of LNG that European companies buy on spot from Russia.
The EU increased its imports last year of Russian LNG, despite the fact that Russian pipeline gas deliveries are down since Moscow's invasion of Ukraine.
In 2024, Russia will still supply 19% of the EU's total gas and LNG.
The Commission is also evaluating the possibility of giving companies a legal basis for invoking force majeure, and for them to terminate their Russian gas contracts with no penalties.
The Commission said that any measure to restrict Russian energy exports must harm Moscow more than Europe, and also take into consideration the impact on Europe’s energy security and fuel costs.
The Commission will hold discussions with EU member countries and companies after publishing its roadmap in the next few months.
The Commission would propose legislation if it decided to proceed with one of the legal instruments. This could require the approval of the European Parliament as well as a strengthened majority of EU member states, depending on what type of legal tool is proposed. (Reporting and editing by Benoit van Overstraeten, Gareth Jones and Kate Abnett)
(source: Reuters)
