Ditching Russian gas could cost EU state €16 billion
Slovakia could face €16 billion (over $18 billion) in penalties for cutting short a long-term gas deal with Russia's Gazprom under the EU's proposed phaseout plan, the country's state-owned gas importer SPP has warned, according to Reuters.
Under the so-called REPowerEU plan, Brussels aims to eliminate the EU's reliance on Russian fossil fuels by 2028. The controversial legislation, supported by Commission President Ursula von der Leyen, would ban new gas contracts with Russia from 2026 and long-term ones by the end of 2027. The Commission has said it is considering legal avenues to enable European companies to claim force majeure, allowing them to terminate Russian gas contracts without penalties.
SPP, which has a supply agreement with Gazprom until 2034, said on Tuesday that even if it invokes force majeure, the Russian energy giant may still seek compensation if an EU-wide import ban comes into force.
Slovakia has repeatedly stressed the risks of cutting off Russian supplies, warning it would drive up prices across Europe and undermine energy security. Along with Hungary, Austria and reportedly Italy, Bratislava has opposed sanctions on Russian gas, which currently require unanimous backing from all EU member states. Slovak Prime Minister Robert Fico slammed the new phaseout plan as 'economic suicide.'
Unlike sanctions, however, this plan is expected to be introduced as trade legislation, requiring the support of just 15 out of 27 EU members to pass, Reuters noted.
Slovakia's energy setup leaves it particularly vulnerable. The landlocked country depends on Russia for about 85% of the gas it uses. In February, Slovakia began receiving Russian supplies via the TurkStream pipeline after Kiev halted gas transit through Ukraine, avoiding a domestic energy crisis. The country had already experienced a significant reduction in Russian gas imports due to Ukraine-related sanctions on Moscow and the 2022 sabotage of the Nord Stream pipeline.
The EC's proposal will now go through the EU's co-decision legislative process, requiring approval from both the European Parliament and the Council.
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