EU Has Limited Legal Options to Cut Off Russian Gas Supply

The European Union has a non-binding goal to phase out imports of Russian natural gas by 2027, but it’s unlikely to resort to a ban to achieve that indicative target.The EU is set to unveil on Tuesday a roadmap for phasing out Russian gas—a pledge the bloc made in the aftermath of the Russian invasion of Ukraine in 2022.However, Russian gas still accounts for more than 15% of the EU’s gas deliveries, including by pipeline and via LNG imports.Russian pipeline gas supply via Ukraine stopped on January 1, 2025, after Ukraine refused to negotiate an extension to the transit deal.However, some European countries, including Hungary, continue to receive Russian gas through the TurkStream pipeline via the Balkans.Hungary is also opposing any new energy sanctions against Russia, especially in gas supply, which suggests that an EU ban or embargo on Russian gas imports – necessitating a unanimous approval by all 27 EU member states – is unlikely to fly.EU Energy Commissioner, Dan Jørgensen, will present a roadmap this week with concrete measures to phase out all imports of Russian fossil fuels, “so that we will no longer rely on a hostile power for our energy supply,” European Commission President Ursula von der Leyen said at the end of April.The EU has reduced the share of Russian gas imports, from 45% of all gas imports before 2022, down to 18% now, von der Leyen noted.However, the EU has boosted imports of Russian LNG in recent months.Last month, reports emerged that the EU is looking for legal ways to tear long-term natural gas supply contracts with Russia’s Gazprom without having to pay sizable penalties. The leading option is declaring a force majeure, the Financial Times reported in mid-April, citing officials from the European Commission.Yet, lawyers told Reuters this week that the force majeure is unlikely to work, considering the three years that have passed since the Russian invasion of Ukraine.By Tsvetana Paraskova for Oilprice.com