Latest news with #RussianGasBan
Bloomberg
05-07-2025
- Business
- Bloomberg
Europe Can Cope With Ban on Russian Gas, TotalEnergies CEO Says
Europe will be able to withstand the proposed ban on Russian gas imports by the European Commission from 2028, the head of TotalEnergies SE said, pointing to the development of new liquefied natural gas export capacities in the US and Qatar. 'We'll be able to ensure the security of supply of Europe without Russian LNG in 2028' thanks to new capacities under construction in those two countries, Chief Executive Officer Patrick Pouyanne said during an interview with BFM Business television on Saturday.
Reuters
17-06-2025
- Business
- Reuters
How the EU plans to ban Russian gas
June 17 (Reuters) - The European Commission on Tuesday proposed legally-binding measures to cut off the European Union's imports of Russian gas and liquefied natural gas imports by the end of 2027, which would end decades-old energy relations with Europe's former top gas supplier. Here are some details about the proposals, which still need approval from EU countries and the European Parliament. The ban would take effect in stages. First, from Jan. 1, 2026, the EU would ban imports under any new Russian gas and LNG deals signed before the end of this year. The EU would then ban imports under short-term contracts from June 17, 2026, for contracts signed before June 17, 2025. Finally, the EU would ban imports under existing long-term Russian gas and LNG contracts from Jan. 1, 2028. That would sever supply contracts of companies including TotalEnergies ( opens new tab and Naturgy ( opens new tab, which were designed to extend into the 2030s. EU LNG terminals would be banned from servicing Russian customers from Jan. 1 2026, under contracts signed after June 17, 2027. Services under existing long-term contracts must halt by Jan. 1, 2028. Around two-thirds of Europe's Russian gas imports are under long-term contracts. The rest is short-term and spot trades. The ban is based on EU trade and energy law - meaning it can be approved with support from a reinforced majority of countries and a majority of the European Parliament. A reinforced majority means having the support of at least 15 of the EU's 27 member countries, representing at least 65% of the EU's population. The Commission chose this route to avoid its proposals being vetoed by Slovakia and Hungary, whose governments have opposed the ban. Sanctions would be the strongest legal basis for banning Russian gas, but require unanimous approval from all EU countries. Spain, Belgium, the Netherlands and France - which import Russian LNG - have said they fully support the ban, while emphasising it must be legally strong enough to avoid exposing firms to penalties or arbitration, EU diplomats told Reuters. Lawyers have said it would be difficult to eliminate this risk if the EU does not use sanctions. European buyers have "take-or-pay" contracts with Gazprom ( opens new tab, which require those that refuse deliveries to pay for much of the contracted gas. Commission officials said the legal measures will allow companies to invoke the contractual clause of "force majeure" - an unforeseeable event - to break their Russian gas contracts, if the contracts include this clause. To enforce the ban, the EU will require companies to disclose the volumes, duration and destination clauses of their Russian gas contracts to customs authorities. Russia supplied 19% of EU gas imports last year, through LNG and via the TurkStream pipeline supplying Hungary and Slovakia - far below the 45% share Russia supplied before its full-scale invasion of Ukraine in 2022. Russia's share is expected to fall further, to 13% this year. The Commission said its proposals would not threaten Europe's energy supplies, since EU countries have spare LNG import capacity or alternative pipeline routes through which they can import non-Russian gas. The EU has infrastructure capacity to import 250 billion cubic metres of LNG per year, but last year used less than half of this, the Commission said. To replace Russian supplies, the EU has signalled willingness to increase LNG imports from the United States, which Brussels is under pressure from President Donald Trump to do. For Hungary and Slovakia, switching to alternatives will cost. Russian pipeline gas was sold at a 13-15% discount to other options last year, according the Center for the Study of Democracy. Unlike with gas, the EU has imposed sanctions on most Russian oil imports, with exceptions for Slovakia and Hungary, which still import more than 80% of their oil from Russia. The Commission proposed a legal obligation on Tuesday for Slovakia and Hungary to produce national plans for how they will quit Russian oil by end-2027. Just 3% of total EU oil imports now come from Russia. Brussels will also propose measures to limit the EU's reliance on nuclear fuel from Russia, but has not confirmed a date for these proposals.
The Independent
17-06-2025
- Business
- The Independent
EU plans new Russian gas ban despite opposition
The European Commission is expected to propose a ban on EU imports of Russian gas and liquefied natural gas by the end of 2027, employing legal measures to ensure member states such as Hungary and Slovakia cannot block the plan. These proposals will outline how the European Union intends to solidify its commitment to end long-standing energy ties with Russia, its former top gas supplier, following Moscow's full-scale invasion of Ukraine in 2022. According to an internal Commission summary seen by Reuters, the proposal would legally enforce a ban on imports of Russian pipeline gas and LNG from January 1, 2026, with extended deadlines for specific contracts. Short-term Russian gas deals signed before June 17, 2025, would have a one-year transition period, expiring on June 17, 2026. Imports under existing long-term Russian contracts would then be prohibited from January 1, 2028, effectively ending the EU's reliance on Russian gas by this date. Companies like TotalEnergies and Spain's Naturgy have Russian LNG contracts extending into the 2030s. EU LNG terminals would also face a gradual ban on providing services to Russian customers, and companies importing Russian gas would be required to disclose their contract information to EU and national authorities. The plans could still change before they are published. EU energy commissioner Dan Jorgensen said on Monday the measures were designed to be legally strong enough for companies to invoke the contractual clause of "force majeure" - an unforeseeable event - to break their Russian gas contracts. "Since this will be a prohibition, a ban, the companies will not get into legal problems. This is force majeure, as it [would be] if it had been a sanction," Jorgensen told reporters. Slovakia and Hungary, which have sought to maintain close political ties to Russia, still import Russian gas via pipeline and say switching to alternatives would increase energy prices. They have vowed to block sanctions on Russian energy, which require unanimous approval from all EU countries, and have opposed the ban. To get around this, the Commission's proposals will use an EU legal basis that can be passed with support from a reinforced majority of countries and a majority of the European Parliament, EU officials said. While most other EU countries have signalled support for the ban, officials said some importing countries have raised concerns about the risk to companies of financial penalties or arbitration for breaking contracts. Around 19 per cent of Europe's gas still comes from Russia, via the TurkStream pipeline and LNG shipments - down from roughly 45 per cent before 2022. Belgium, France, the Netherlands and Spain are among those that import Russian LNG. "We fully support this plan in principle, with the aim of ensuring that we find the right solutions to provide maximum security for businesses," French industry minister Marc Ferracci told reporters on Monday.
Reuters
17-06-2025
- Business
- Reuters
EU readies ban on Russian gas imports by end of 2027
LUXEMBOURG, June 17 (Reuters) - The European Commission is set to propose on Tuesday a ban on EU imports of Russian gas and liquefied natural gas by the end of 2027, using legal measures to ensure the plan cannot be blocked by EU members Hungary and Slovakia. The proposals will set out how the European Union plans to fix into law its vow to end decades-old energy relations with Europe's former top gas supplier Russia, made after Moscow's 2022 full-scale invasion of Ukraine. An internal Commission summary of the upcoming proposal, seen by Reuters, said it would fix into law a ban on imports of Russian pipeline gas and LNG from January 1, 2026, with longer deadlines for certain contracts. Short-term Russian gas deals signed before June 17, 2025 would have a one-year transition period, to June 17, 2026, it said. Imports under existing long-term Russian contracts would then be banned from January 1, 2028 - effectively ending the EU's use of Russian gas by this date, the summary said. Companies including TotalEnergies ( opens new tab and Spain's Naturgy ( opens new tab have Russian LNG contracts extending into the 2030s. EU LNG terminals would also be gradually banned from providing services to Russian customers, and companies importing Russian gas would have to disclose information on their contracts to EU and national authorities, Reuters previously reported. The plans could still change before they are published. EU energy commissioner Dan Jorgensen said on Monday the measures were designed to be legally strong enough for companies to invoke the contractual clause of "force majeure" - an unforeseeable event - to break their Russian gas contracts. "Since this will be a prohibition, a ban, the companies will not get into legal problems. This is force majeure, as it [would be] if it had been a sanction," Jorgensen told reporters. Slovakia and Hungary, which have sought to maintain close political ties to Russia, still import Russian gas via pipeline and say switching to alternatives would increase energy prices. They have vowed to block sanctions on Russian energy, which require unanimous approval from all EU countries, and have opposed the ban. To get around this, the Commission's proposals will use an EU legal basis that can be passed with support from a reinforced majority of countries and a majority of the European Parliament, EU officials said. While most other EU countries have signalled support for the ban, officials said some importing countries have raised concerns about the risk to companies of financial penalties or arbitration for breaking contracts. Around 19% of Europe's gas still comes from Russia, via the TurkStream pipeline and LNG shipments - down from roughly 45% before 2022. Belgium, France, the Netherlands and Spain are among those that import Russian LNG. "We fully support this plan in principle, with the aim of ensuring that we find the right solutions to provide maximum security for businesses," French industry minister Marc Ferracci told reporters on Monday.
Reuters
16-06-2025
- Business
- Reuters
EU moves ahead with Russian gas ban proposal despite Hungary, Slovakia vetoes
LUXEMBOURG, June 16 (Reuters) - Hungary and Slovakia on Monday opposed a planned European Union ban on Russian gas imports, though Brussels is expected to propose the law on Tuesday, which could pass without their approval. The European Commission aims to ban EU Russian gas and liquefied natural gas (LNG) imports by the end of 2027. On Tuesday, it will propose the measures and set out how it will legally enact the plan, which was announced last month. Hungary and Slovakia, however, blocked EU energy ministers from issuing a joint statement endorsing the plan, which was backed by the 25 other member states. "Energy policy is a national competence & this endangers our sovereignty and energy security," Hungary's Foreign Minister Peter Szijjarto said in a post on X, in which he said Hungary had vetoed the joint statement. A spokesperson for Slovakia's EU representation confirmed the country had done the same. The Commission plans to propose the ban using a legal basis allowing it to pass with the support of a "reinforced majority" of countries and a majority of the European Parliament, according to EU officials. A reinforced majority requires at least 15 of the EU's 27 members, and must represent at least 65% of the EU's population. In Monday's closed-door meeting, most energy ministers signalled their support, though some raised concerns that it could expose companies to legal risks or financial penalties for breaking long-term gas contracts, EU diplomats said.
