EU Considers New Measures on Russian Fuel

The European Commission is currently assessing the feasibility of legally prohibiting companies within the EU from entering into new contracts for the purchase of Russian fossil fuels.

This information comes from a Reuters report citing a senior European official.

EU may permit contract termination with Russia

At the same time, the Commission is working on legal options that would allow EU companies to terminate existing gas supply contracts with Russia without incurring penalties.

It is expected that the European Commission will present possible options in a “roadmap” scheduled for May 6. Among the proposals are potential trade measures that could prevent European companies from entering into new contracts for Russian fuel.

The aim of prohibiting new contracts is to reduce spot purchases of Russian liquefied natural gas (LNG) by European firms.

Previously, the Commission stated that any potential measures to limit imports of Russian energy resources must inflict more harm on Moscow than on the EU. Consideration must also be given to the impact on Europe's energy security and fuel prices for consumers.

After the publication of the “roadmap” next month, the Commission plans to discuss the proposed options with member states and EU companies. If the Commission decides to advance any legal tools (e.g., a ban on new contracts), it will propose relevant legislative acts.

Approval from the European Parliament and a significant majority of EU member states in the Council may be needed for their adoption, depending on the type of proposed instrument.

EU plans to unveil strategy to cease oil and gas imports from Russia in May

The European Commission intends to present a comprehensive phased plan to withdraw from importing Russian petroleum products and natural gas in May.

In response to the full-scale aggression of Russia against Ukraine, the European Union has committed to eliminate the use of Russian fossil fuels by 2027.

Analysts from the Brussels-based think tank Bruegel recommended that the EU consider imposing tariffs on Russian gas imports. A full withdrawal from Russian natural gas would necessitate increased purchases from other suppliers, including the United States.

Currently, the European Union is exploring the option of increasing LNG imports from the USA.