EU plans ban on new Russian gas deals using trade law to bypass veto threats

The European Commission is preparing to propose a sweeping ban on new Russian gas contracts, employing EU trade law to bypass expected vetoes from Hungary and Slovakia.

The move marks a significant step in Brussels's effort to sever the bloc’s remaining energy ties with Moscow, Caliber.Az reports, citing a draft summary of the plan, seen by British media.

The proposal would immediately prohibit European companies from entering into new agreements for Russian gas.

Existing short-term pipeline and liquefied natural gas (LNG) contracts would be phased out by 2026, with long-term contracts due to end no later than January 1, 2028.

Hungary and Slovakia, two member states heavily reliant on Russian gas and previously opposed to sanctions, would be granted a temporary exemption allowing them to continue imports until 2027, according to officials familiar with the proposal.

The proposal, expected to be presented on June 15, follows a broader European Commission roadmap unveiled last month to eliminate Russian oil and gas imports by 2027.

While Russian gas currently accounts for less than 19% of the EU’s supply—down from about 40% before the invasion of Ukraine in 2022—concerns remain over enforcing such a ban without unanimous support.

To avoid the political roadblock of sanctions, which require consensus, Brussels plans to invoke trade law provisions. This approach would allow the ban to proceed with qualified majority support rather than unanimity.

The Commission also intends to reference treaty clauses mandating the EU to safeguard energy supply security.

Companies would be required to submit detailed documentation to customs authorities confirming that their gas imports do not originate from Russia.

The draft proposal is still under discussion and subject to change before its formal presentation.

By Aghakazim Guliyev