EU seeks legal escape hatch from Russian gas contracts

The EU is exploring legal strategies that would allow energy companies to terminate long-term contracts with Russian suppliers without incurring significant financial penalties.

The European Commission is assessing the use of force majeure clauses to justify exiting these deals. “If the whole idea is not paying Russia, then [paying compensation] would undermine the whole purpose,” one EU official said, Caliber.Az reports via foreign media.

The move reflects the EU’s broader efforts to reduce its reliance on Russian energy and halt funding for Moscow’s war in Ukraine. While Russian pipeline gas now accounts for just 11 per cent of EU imports—down from nearly 40 per cent in 2022—imports of Russian liquefied natural gas (LNG) have surged in the past three years.

The Commission’s legal review forms part of a delayed roadmap aimed at phasing out Russian fossil fuels entirely by 2027. The roadmap, initially set for release in March, has been postponed due to opposition from Hungary and Slovakia—countries still reliant on Russian pipeline gas. 

Hungary’s pro-Russia government has threatened to veto any gas sanctions, which require unanimous approval among EU member states. Discussions around the Nord Stream pipeline’s future and gas trade with the US under President Donald Trump’s administration have also contributed to the delay.

“It’s a mess,” one EU diplomat remarked. “How does the US fit in all this? How do we diversify?’’ Though Brussels has empowered member states to block Russian LNG infrastructure access, many governments remain cautious, fearing price spikes. 

Some EU officials question whether the war in Ukraine provides sufficient legal grounds to invoke force majeure. Brussels-based think tank Bruegel has recommended tariffs over a full ban, arguing they could undercut Russian revenues while requiring only majority support.

By Naila Huseynova