EU set to unveil plan for ending Russian fossil fuel dependence boosting US LNG imports

The EU is preparing to unveil a roadmap aimed at phasing out Russian fossil fuel purchases, a move that could shift European energy sourcing towards the US.

According to European Council President Antonio Costa, the strategy, expected to be announced on May 6, is designed to signal to companies that they should increasingly turn to US liquefied natural gas (LNG) to replace Russian supplies, Caliber.Az reports via foreign media.

This decision follows a significant reduction in Russian natural gas exports to Europe after Russia’s invasion of Ukraine in 2022, a move that led to dramatic rises in fuel and electricity prices. Costa explained in an interview that the EU’s reliance on Russian gas had decreased to just 19 per cent of total supply last year, down from over 40 per cent before the war.

“This creates space in the market to import from other suppliers, which means new opportunities for the United States,” he stated. 

The roadmap also comes amid ongoing trade discussions between the EU and the US, where US President Donald Trump has urged Europe to purchase more American energy products to avoid potential tariffs. The US is currently the third-largest gas supplier to the EU.

While trade negotiations are handled by the European Commission, the decision to sign new LNG contracts with the US ultimately rests with European companies. Costa emphasised that companies are encouraged to explore competitive US prices. “There’s a great opportunity to increase LNG imports from the U.S.,” he said. 

To assist European companies in severing long-term contracts with Russia, the Commission is considering trade measures such as quotas or tariffs. While sanctioning Russian gas imports would be the strongest approach, opposition from Hungary and Slovakia has prevented the EU from moving forward with such measures, although trade instruments could be adopted by a qualified majority.

By Naila Huseynova