Latest news with #EUImports
CNN
17-06-2025
- Business
- CNN
Europe takes a big step toward banning Russian oil and gas as Ukraine war drags on
The European Union is moving closer to banning all imports of Russian oil and natural gas more than three years after Moscow launched its unprovoked, full-scale invasion of Ukraine. The European Commission, the bloc's executive arm, put forward a legislative proposal Tuesday to gradually ban purchases of Russian natural gas – whether supplied via pipeline or as liquefied natural gas (LNG) on tankers. Under the plan, no new import contracts will be allowed from next year, while imports under existing short-term contracts for most EU member states will have to stop in a year's time and purchases under long-term contracts will be outlawed by the end of 2027. 'Russia has repeatedly attempted to blackmail us by weaponizing its energy supplies,' European Commission President Ursula von der Leyen said in a statement. 'We have taken clear steps to turn off the tap and end the era of Russian fossil fuels in Europe for good.' The proposal also includes a ban on Russian-owned or controlled companies signing up to long-term contracts for the EU's LNG terminal services, ensuring that 'terminal capacity can be redirected to alternative suppliers.' As for oil imports, the commission proposed requiring the member states still importing Moscow's oil to prepare plans to phase out these supplies, aiming at a complete stop by the end of 2027. For example, Hungary and Slovakia were still importing Russian crude oil via pipeline last year, according to an analysis by the Centre for Research on Energy and Clean Air, a research organization. Tuesday's proposal puts meat on the bones of the EU's 'REPowerEU' plan, introduced back in May 2022 to break the bloc's dependence on Russian energy. Hungary and Slovakia, two EU countries with more Russia-friendly governments, have previously threatened to block new rounds of sanctions against Russia. While they have ultimately voted in favor, the European Commission has taken steps to ensure they cannot stand in the way of its latest plan by using trade and energy legislation as the basis for Tuesday's proposal. That way, the new restrictions will become law if they are approved by a 'qualified majority,' meaning that more than half of EU member states representing at least 65% of the bloc's population will need to vote in favor. If the plan had been proposed under the EU sanctions rules, it would have required a unanimous vote from all member states. The EU drastically slashed its imports of Russian energy after Moscow invaded Ukraine in early 2022. Russia's share of the bloc's total imports of natural gas fell to 19% last year, from 45% in 2021, according to official EU data. Meanwhile, Moscow accounted for just 3% of the EU's total oil imports in 2024, down from 27% at the start of 2022. Last week, the EU unveiled a new package of sanctions against Russia – its 18th since Moscow's invasion – designed to further reduce the Kremlin's ability to make money from its oil and gas production. Von der Leyen said the sanctions were necessary 'because strength is the only language that Russia will understand.' The proposed sanctions include lowering the price cap on Russian oil exports from $60 to $45 per barrel and introducing a full transaction ban on Russian banks and other financial institutions in third countries that help Russia circumvent existing Western sanctions. The new package will need to be approved by all of the EU's 27 member states. That could be complicated, given concerns raised previously by some EU countries, such as Hungary and Slovakia, about further sanctions on Russia. Ivana Kottasová contributed reporting.
Russia Today
17-06-2025
- Business
- Russia Today
EU member calls for review of ban on Russian gas
The EU should keep the option of resuming Russian gas imports on the table once a peace deal between Moscow and Kiev is reached, the Austrian energy ministry told the Financial Times on Tuesday. The Austrian proposal, previously voiced by Hungary and Slovakia, comes as the European Commission prepares to bypass member states' vetoes with a trade law bill that would prohibit any new gas deals with Russia and end current deals within two years, regardless of the outcome of peace talks. Brussels 'must maintain the option to reassess the situation' after the Ukraine conflict is resolved, the Austrian ministry told the newspaper. Austrian State Secretary for Energy Elisabeth Zehetner reportedly pleaded with her EU peers at a meeting in Luxembourg on Monday, diplomats with knowledge of the discussions told the FT. This is the first time since the escalation of the Ukraine conflict in February 2022 that an EU country other than Hungary and Slovakia has publicly signaled openness to restoring gas ties with Moscow in the event of a peace settlement. Italy, ranked as a major importer of Russian gas in 2024 by the think-tank Ember, has also floated the option of resuming gas imports once the conflict ends behind closed doors, the newspaper claimed. Bloc officials firmly oppose such a step. A potential peace deal should 'not lead to us starting to import Russian gas again,' EU energy commissioner Dan Jorgensen told the FT on Monday. Russian pipeline gas accounted for more than 40% of EU imports in 2021 but had dropped to about 11% by 2024. Moscow dramatically reduced exports to the bloc in 2022 following Western sanctions and the sabotage of the Nord Stream pipelines. Despite this, EU nations reportedly spent €927.4 million on Russian pipeline gas last December alone, while the bloc's imports of Russian liquefied natural gas (LNG) amounted to €917 million. Both figures were at their highest since the beginning of 2023. Land-locked Austria bought around 80% of its gas from from Russia until last year, when Kiev cut supplies via Ukrainian pipelines. Hungary and Slovakia have previously opposed sanctioning Russian gas imports, which currently require unanimous approval of all member states. Hungarian Foreign Minister Peter Szijjarto has also criticized the proposal to completely phase out Russian gas by 2027 as 'absolute insanity,' warning that it could trigger energy price hikes and seriously undermine the sovereignty of EU member states. Hungarian Prime Minister Viktor Orban has pledged to block the initiative.
Reuters
17-06-2025
- Business
- Reuters
How the EU plans to ban Russian gas
June 17 (Reuters) - The European Commission on Tuesday proposed legally-binding measures to cut off the European Union's imports of Russian gas and liquefied natural gas imports by the end of 2027, which would end decades-old energy relations with Europe's former top gas supplier. Here are some details about the proposals, which still need approval from EU countries and the European Parliament. The ban would take effect in stages. First, from Jan. 1, 2026, the EU would ban imports under any new Russian gas and LNG deals signed before the end of this year. The EU would then ban imports under short-term contracts from June 17, 2026, for contracts signed before June 17, 2025. Finally, the EU would ban imports under existing long-term Russian gas and LNG contracts from Jan. 1, 2028. That would sever supply contracts of companies including TotalEnergies ( opens new tab and Naturgy ( opens new tab, which were designed to extend into the 2030s. EU LNG terminals would be banned from servicing Russian customers from Jan. 1 2026, under contracts signed after June 17, 2027. Services under existing long-term contracts must halt by Jan. 1, 2028. Around two-thirds of Europe's Russian gas imports are under long-term contracts. The rest is short-term and spot trades. The ban is based on EU trade and energy law - meaning it can be approved with support from a reinforced majority of countries and a majority of the European Parliament. A reinforced majority means having the support of at least 15 of the EU's 27 member countries, representing at least 65% of the EU's population. The Commission chose this route to avoid its proposals being vetoed by Slovakia and Hungary, whose governments have opposed the ban. Sanctions would be the strongest legal basis for banning Russian gas, but require unanimous approval from all EU countries. Spain, Belgium, the Netherlands and France - which import Russian LNG - have said they fully support the ban, while emphasising it must be legally strong enough to avoid exposing firms to penalties or arbitration, EU diplomats told Reuters. Lawyers have said it would be difficult to eliminate this risk if the EU does not use sanctions. European buyers have "take-or-pay" contracts with Gazprom ( opens new tab, which require those that refuse deliveries to pay for much of the contracted gas. Commission officials said the legal measures will allow companies to invoke the contractual clause of "force majeure" - an unforeseeable event - to break their Russian gas contracts, if the contracts include this clause. To enforce the ban, the EU will require companies to disclose the volumes, duration and destination clauses of their Russian gas contracts to customs authorities. Russia supplied 19% of EU gas imports last year, through LNG and via the TurkStream pipeline supplying Hungary and Slovakia - far below the 45% share Russia supplied before its full-scale invasion of Ukraine in 2022. Russia's share is expected to fall further, to 13% this year. The Commission said its proposals would not threaten Europe's energy supplies, since EU countries have spare LNG import capacity or alternative pipeline routes through which they can import non-Russian gas. The EU has infrastructure capacity to import 250 billion cubic metres of LNG per year, but last year used less than half of this, the Commission said. To replace Russian supplies, the EU has signalled willingness to increase LNG imports from the United States, which Brussels is under pressure from President Donald Trump to do. For Hungary and Slovakia, switching to alternatives will cost. Russian pipeline gas was sold at a 13-15% discount to other options last year, according the Center for the Study of Democracy. Unlike with gas, the EU has imposed sanctions on most Russian oil imports, with exceptions for Slovakia and Hungary, which still import more than 80% of their oil from Russia. The Commission proposed a legal obligation on Tuesday for Slovakia and Hungary to produce national plans for how they will quit Russian oil by end-2027. Just 3% of total EU oil imports now come from Russia. Brussels will also propose measures to limit the EU's reliance on nuclear fuel from Russia, but has not confirmed a date for these proposals.
The Independent
17-06-2025
- Business
- The Independent
EU plans new Russian gas ban despite opposition
The European Commission is expected to propose a ban on EU imports of Russian gas and liquefied natural gas by the end of 2027, employing legal measures to ensure member states such as Hungary and Slovakia cannot block the plan. These proposals will outline how the European Union intends to solidify its commitment to end long-standing energy ties with Russia, its former top gas supplier, following Moscow's full-scale invasion of Ukraine in 2022. According to an internal Commission summary seen by Reuters, the proposal would legally enforce a ban on imports of Russian pipeline gas and LNG from January 1, 2026, with extended deadlines for specific contracts. Short-term Russian gas deals signed before June 17, 2025, would have a one-year transition period, expiring on June 17, 2026. Imports under existing long-term Russian contracts would then be prohibited from January 1, 2028, effectively ending the EU's reliance on Russian gas by this date. Companies like TotalEnergies and Spain's Naturgy have Russian LNG contracts extending into the 2030s. EU LNG terminals would also face a gradual ban on providing services to Russian customers, and companies importing Russian gas would be required to disclose their contract information to EU and national authorities. The plans could still change before they are published. EU energy commissioner Dan Jorgensen said on Monday the measures were designed to be legally strong enough for companies to invoke the contractual clause of "force majeure" - an unforeseeable event - to break their Russian gas contracts. "Since this will be a prohibition, a ban, the companies will not get into legal problems. This is force majeure, as it [would be] if it had been a sanction," Jorgensen told reporters. Slovakia and Hungary, which have sought to maintain close political ties to Russia, still import Russian gas via pipeline and say switching to alternatives would increase energy prices. They have vowed to block sanctions on Russian energy, which require unanimous approval from all EU countries, and have opposed the ban. To get around this, the Commission's proposals will use an EU legal basis that can be passed with support from a reinforced majority of countries and a majority of the European Parliament, EU officials said. While most other EU countries have signalled support for the ban, officials said some importing countries have raised concerns about the risk to companies of financial penalties or arbitration for breaking contracts. Around 19 per cent of Europe's gas still comes from Russia, via the TurkStream pipeline and LNG shipments - down from roughly 45 per cent before 2022. Belgium, France, the Netherlands and Spain are among those that import Russian LNG. "We fully support this plan in principle, with the aim of ensuring that we find the right solutions to provide maximum security for businesses," French industry minister Marc Ferracci told reporters on Monday.
Reuters
17-06-2025
- Business
- Reuters
EU should consider return to Russian gas if peace in Ukraine, Austria says
LUXEMBOURG, June 17 (Reuters) - The European Union should be open to resuming Russian natural gas imports in the future if a peace deal is reached between Russia and Ukraine, an Austrian official said, as Brussels readies a proposal to ban Russian imports. The European Commission is set to propose legal measures on Tuesday to enact the ban, with the aim of halting the EU's reliance on Russian energy by the end of 2027. "We will systematically weigh all proposals and then we will decide on our position," Austria's state secretary for energy, Elisabeth Zehetner, told reporters on Monday, of the upcoming proposals. "But it is clear already, that when the war is finally over, that is something that we should take into account in our evaluation of the situation then," Zehetner said. EU diplomats told Reuters Zehetner had emphasised the need to re-consider the ban if there is a peace deal in Ukraine, in a closed-door meeting of the EU countries' energy ministers on Monday, but that no other member states had called for the same. Hungary and Slovakia have rejected the plan to ban Russian imports. The Commission proposals, due to be published on Tuesday, are designed so they can pass into law with the approval of a reinforced majority of countries, meaning one or two could not block them. EU Energy Commissioner Dan Jorgensen said on Monday it would be "a very unwise decision" to resume Russian gas imports in the future, even if there was a peace deal in Ukraine. "I think that would be to repeat the mistakes that we've done in the past," he said. Around 19% of the EU's gas still comes from former top supplier Russia, down from roughly 45% before Moscow's full-scale invasion of Ukraine in 2022. Land-locked Austria bought most of its gas supplies from Russia until last year, when Russian state energy giant Gazprom cut supplies to Austria after a contractual dispute, and supplies via Ukrainian pipelines ceased at the end of the year.
