EU considers legal loopholes to abandon Russian gas contracts
(MENAFN) The European Union is reportedly exploring legal avenues to allow energy companies to exit long-term gas contracts with Russia without facing financial penalties, according to the Financial Times, which cited anonymous sources. This move is part of the EU's broader strategy to completely eliminate its dependence on Russian fossil fuels by 2027.
Although Russian gas has not been targeted by EU sanctions following the escalation of the Ukraine conflict in 2022, the bloc has significantly reduced its reliance on Russian pipeline gas. Imports have fallen from more than 40% of total EU supply in 2021 to just 11% by 2024.
However, imports of Russian liquefied natural gas (LNG) have risen sharply—by over 60% in the past three years. Russia’s Yamal LNG facility continues to supply major companies like Shell and Naturgy, making Russia the EU’s second-largest gas supplier in 2024, following Norway.
According to the FT, EU legal experts are evaluating whether companies can invoke “force majeure”—a clause typically used when unforeseen and uncontrollable events prevent contract fulfillment—to justify terminating gas contracts. They are considering whether the Ukraine conflict qualifies as such a circumstance, which could allow firms to exit without paying damages.
“If the aim is to stop financing Russia, then compensating for broken contracts defeats the purpose,” one EU official reportedly said.
The European Commission has not officially commented on the matter. A detailed roadmap to phase out Russian energy was expected last month but has been delayed, largely due to opposition from Hungary and Slovakia, both of which remain heavily reliant on Russian pipeline supplies. Hungary has stated it would veto any sanctions that compromise its energy security.
Commission President Ursula von der Leyen has indicated that the roadmap is still on track for release within the next month.
Some EU ministers argue that current legal mechanisms are insufficient to compel companies to walk away from Russian contracts, especially due to the financial and logistical risks. Legal experts also caution that invoking force majeure may not be a strong defense in court, as contracts vary and are typically confidential.
Analysts believe ending Russian gas imports would likely increase the EU’s dependence on other exporters such as the United States, which became the bloc’s third-largest supplier last year. Former U.S. President Donald Trump has stated that boosting American energy exports to Europe will be a top priority in discussions with EU leaders, particularly following recent U.S. tariff hikes.
Russia has consistently maintained that it is a dependable energy partner and has criticized Western trade measures as violations of international law.
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