EU plans to cease imports of Russian energy sources by the year 2027's close
The European Commission unveiled a comprehensive plan on Tuesday, aiming to bid farewell to Russian energy imports by the close of 2027. The commission plans to sever ties with its former top gas supplier, Russia, in response to its invasion of Ukraine.
This strategy involves a phased legal approach, targeting gas, oil, and nuclear materials.
On the gas front, the commission intends to abolish new and short-term contracts as early as the end of 2025. Long-term contracts are set to be terminated by 2027, employing force majeure clauses related to Russia’s aggression in Ukraine to evade penalties for premature termination. Additionally, each EU member state will be required to submit a detailed strategy by the end of 2025 outlining their approach to eliminate Russian gas, including LNG.
Regarding oil, the commission is developing new measures to curtail covert oil shipments via third-country tankers. Unlike gas, the oil phase-out largely relies on existing sanctions and reduced purchases, although specific legislative actions are yet to be finalized.
As for nuclear materials, the commission proposes bans on new contracts for Russian-enriched uranium, with countries using Russian-designed VVER reactors mandated to secure alternative nuclear fuel suppliers. The EU also plans to boost production via a "European Radioisotopes Valley Initiative" to lessen dependency.
The legislative timeline indicates that draft legislation is expected to solidify gas contract bans by June 2025. The implementation of these bans will unfold gradually between 2025 and 2027, with full effects realized by 2027. The commission aims to utilize force majeure provisions to shield companies from arbitration risks as they exit contracts ahead of schedule. Countries heavily reliant on Russian energy, such as Hungary and Slovakia, will need to comply with these measures but may encounter challenges during implementation.
- The European Commission proposed measures to phase out imports of Russian energy by 2027, including gas, oil, and nuclear materials, in response to politics surrounding Russia's invasion of Ukraine.
- The commission plans to abolish new and short-term gas contracts by the end of 2025, with long-term contracts terminated by 2027, using force majeure clauses related to Russia’s aggression in Ukraine to evade penalties.
- Each EU member state will be required to submit a detailed strategy by the end of 2025 outlining their approach to eliminate Russian gas, including LNG, as part of the industry-wide policy-and-legislation changes.
- Regarding oil, the commission is developing new measures to curb covert oil shipments via third-country tankers, while also relying on existing sanctions and reduced purchases to achieve the phase-out.
- In the field of nuclear energy, the commission proposes bans on new contracts for Russian-enriched uranium and plans to boost production via the "European Radioisotopes Valley Initiative" to reduce dependency, while also requiring countries using Russian-designed VVER reactors to secure alternative nuclear fuel suppliers.
