Brussels will allow EU countries to terminate contracts for Russian gas supplies
The European Commission is trying to persuade countries to stop buying Russian gas completely
Gazprom's deliveries to the European Union have decreased several times, but European countries continue to receive gas from Russia. Pipeline gas is delivered via two branches, through Ukraine and Turkey, and purchases of LNG have even increased since the beginning of the war.
The EU authorities have already called on countries and companies to abandon liquefied natural gas, in particular. Now Brussels will give countries the opportunity to ban imports from Russia and Belarus.
Source. This was reported by the Financial Times.
This will allow European energy companies to refuse to supply under long-term contracts without paying large fines, a senior EU official told the FT.
According to the draft document, which contains the legal justification for the new policy, any EU country will have the right to ban Russian and Belarusian companies from purchasing volumes for pumping gas through pipelines and capacity at LNG terminals.
Prior to the invasion, Russia accounted for 40% of European gas imports; now this share, including LNG, has dropped to 12%, according to Eurostat. Some Western companies, particularly those from Spain, Belgium, and France, continue to buy Russian LNG because it is not prohibited and breaking a long-term contract carries a significant penalty.
The EU also did not want to impose a complete ban on LNG imports, as this could destabilize the market and hit the bloc's countries, which have limited opportunities to diversify their purchases.
Now, the European Commission is trying to convince countries to stop buying Russian gas entirely and is giving those who can refuse to do so a legal tool. EU members, "when necessary for their security," will be able to "partially or, where justified, completely restrict" access to infrastructure for gas operators from Russia and Belarus, the document says.
Read more about this in Mind's article "Sanctions work: how Ukraine is fighting for Europe's embargo on Russian liquefied natural gas".
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