EU to set the 2027 period for reducing energy contracts with Russia

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The European Commission will establish a period of 2027 for EU companies to reduce remaining energy contracts with Russia and move to other sources, including the United States, according to officials.

The plan, which will be announced on Tuesday, has been monitored long before the publication by the senior EU officials distrustful of its probable impact on the energy market. Mark an intensification of the block efforts to untie Russian fossil fuels From the full scale of Moscow Invasion of Ukraine In 2022.

Although oil and Russian coal are subject to strict sanctions, the EU has struggled to ban gas imports due to the opposition of pro-russian governments such as Hungary and Slovakia that argue that it would increase energy prices.

Four officials reported on the commission document they would require companies that ended all market gas contracts with Russian suppliers at the end of this year and ending all long -term contracts for 2027.

The measures, which, once announced, must still be approved by most EU Member States and the European Parliament, are aimed at avoiding the need for the unanimous approval block of Member States to impose gas sanctions. Hungary and Slovakia have said they would block sanctions.

Three of the officials said that Brussels would also promote the authorities to have a higher supervision of commercial contracts in order to trace Russian fuel buyers.

Prior to 2022, the EU obtained more than two fifths of its imported pipe gas imports and about 28 percent of the crucible imported from Russia. Since then, Russia’s share has dropped around 13 percent of gas imports, including liquefied natural gas and less than 3 % of oil imports.

Despite a significant decrease in pipe gas, the EU has increased its Russian GNL imports, with shipping hit record levels last year.

According to Kpler, a data and analytical company, there were 17 shipments from the GNL Yamal plant in Russia to the EU destinations in April. The boats transported 1.2 million tons of GNL to the block, with about 59 percent of the load delivered to France and 23 percent to Belgium. The rest went to the Netherlands, Portugal and Spain.

Unlike Hungary and Slovakia, other member countries, including the Netherlands and Belgium, have said they would support Russian gas sanctions as a way to force companies to reduce their Russian contracts.

“This push to reach zero will not be easy,” said a superior diplomat from the EU, who added that companies should pay more for gas if they are forbidden to buy in Russia. “If you want to lift all the secret of commercial contracts, there will be a price for it.”

The diplomat said that it would be difficult to avoid the constituency of the proposed rules, such as the gas that is sent through the Turkstream Gasuret of Azerbaijan, but may include the supply of Russia.

The commission document is partly intended to tell Washington that the EU is ready to buy more GNL in the United States as part of an agreement to reduce their commercial deficit, according to officials.

The completion plan will also cover the pieces of nuclear and spare fuel. Finland, Bulgaria, Czech Republic, Slovakia and Hungary trust in different extensions in Russian nuclear technology.

All of these, except Hungary, have signed contracts with the American Nuclear Company Westinghouse to replace their Russian fuel bars, but the parts are difficult to replace, as few non-Russian manufacturers make spare parts for ancient Soviet reactors.

An EU official said that the roadmap was intended to ensure that Member States “would be in difficulty” if they maintain their Russian contracts.

Bloomberg first reported the date of completion of 2027.

PAOLA TAMMA Additional Reports in Brussels and Chris Cook in London