As the Financial Times has learned, Brussels will soon propose a ban on all new contracts for the supply of Russian gas on the basis of trade law. The EU has concluded that this will help to bypass the veto from Hungary and Slovakia.
Points of attention
- The EU plans to utilize trade law to enforce the ban, enabling decisions with the approval of a majority of member states.
- Gas from Russia currently represents less than 19% of total fossil fuel imports into the EU, a significant decrease from previous levels.
Russia has serious problems
According to media reports, the EU intends to ban companies from entering into new contracts for the supply of Russian gas with immediate effect.
Short-term contracts for the import of pipeline and liquefied gas from Russia are to be terminated from 2026, while long-term contracts will be valid until January 1, 2028.
In addition, it is indicated that a concession is still provided for Hungary and Slovakia, which import Russian gas.
Official Brussels plans to grant them an exception until 2027 to gradually terminate existing gas contracts.
Importantly, gas from Russia accounts for less than 19% of total fossil fuel imports into the EU, compared to around two-fifths at the time of the full-scale invasion of Ukraine in 2022.
To implement this plan, the European Commission plans to use trade law, which will allow decisions to be made with the approval of a majority of member states, rather than all.
