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The European Commission will propose that the EU bans all new Russian gas contracts based on trade law, in a move that seeks to circumvent any potential veto from Hungary and Slovakia.
Companies would be banned from signing any new contracts for Russian gas, effective immediately, according to a summary of the proposal seen by the Financial Times and due for presentation on Tuesday. Existing short-term contracts, pipeline gas and LNG imports from Russia would have to be terminated from 2026, while those linked to long-term contracts would come to an end on January 1 2028, the summary said.
In a concession to Hungary and Slovakia, who import Russian gas, they will be granted an exemption until 2027 to phase out their existing gas contracts, two officials with knowledge of the proposal said.
The proposals follow the publication of a plan by the commission last month outlining how it aimed to cut off imports of Russian oil and gas into the EU by 2027.
Russian gas makes up less than 19 per cent of the EU’s overall imports of the fossil fuel, down from around two-fifths when Moscow started its full-scale invasion of Ukraine in 2022.
Questions had been raised as to how the commission would enforce the measures, given that Hungary and Slovakia have said they would veto efforts to sanction Russian gas imports. Sanctions require unanimous approval of all member states.
Instead, the commission would use trade law, the summary said, allowing the proposals to pass with approval from a majority of member states. It would also cite articles in the EU’s founding treaty that EU energy policy must ensure security of supply.
Companies will have to provide detailed information to customs authorities on gas contracts to show that imports were not coming from Russia.
The proposals are under discussion and could change.
https://www.ft.com/content/8b005c13-2088-47cd-aa47-9163e36efa4a
