Latest news with #EUImports
Reuters
23-05-2025
- Business
- Reuters
Hungary's Orban says EU plan to ban Russian energy imports must be prevented
BUDAPEST, May 23 (Reuters) - The European Union's plan to ban Russian energy imports must be prevented, Hungarian Prime Minister Viktor Orban said on Friday in an interview on state radio. The European Commission will next month propose legal measures to phase out the EU's imports of all Russian gas and liquefied natural gas by the end of 2027, the body said earlier in May. Member states Slovakia and Hungary, which rely on Russian oil and gas supplies, have opposed the proposed ban.
Malay Mail
18-05-2025
- Business
- Malay Mail
Sanctions, tariffs and transparency measures: How the EU plans to phase out Russian gas and LNG by 2027
BRUSSELS, May 18 — The European Commission will next month propose legal measures to fully phase out the EU's Russian gas imports by the end of 2027, and ban spot contracts with Russia by the end of this year. Here's how that could work. How will the EU ban Russian gas? Sanctions are legally the easiest route for the EU to ban Russian gas and liquefied gas imports. However, they require unanimous approval from all 27 EU countries. Hungary and Slovakia, who want to maintain close political ties with Russia, have vowed to block gas sanctions. The two countries import it via the Turkstream pipeline, and say switching to alternatives would increase energy prices. As a workaround, the European Commission will in June propose alternative measures that can be approved by a reinforced majority of countries — and which can only be blocked by a group of at least four countries. In a closed-door meeting of EU countries' ambassadors last week, all bar Hungary and Slovakia welcomed the plan to ban Russian gas, EU diplomats said. Still, some raised concerns about the legal certainty of the EU plan, and its impact on energy prices. If not sanctions, then how? The Commission has declined to specify the type of legal tools it's working on. EU diplomats point to a few options. One would be to impose tariffs on Russian gas and LNG imports. While not an outright ban, tariffs would aim to make new Russian gas deals economically unfeasible. EU tariffs on Russian fertilisers offer an example of how this could work. There, the EU plans to impose a tariff that rises to 430 euros (US$481.21) per ton within three years — a 'prohibitive' level designed to effectively cut off imports. Such tariffs could also allow European companies with long-term Russian gas contracts to argue that EU regulation has changed to such an extent that the terms of their contracts are unsustainable, and invoke 'force majeure' to exit these deals. Lawyers have warned, however, that companies could face financial penalties for doing this. How can a ban be enforced? Governments say more transparency on Russian gas trades will be crucial. To achieve this, the EU could use the 'Union Database', a European Commission platform which tracks EU imports of biofuels. That tool could be re-purposed to track Russian gas and reveal which companies are trading it, allowing officials to target suppliers or traders that breach the ban. The Commission's June proposals will also include obligations for companies to disclose information on their Russian gas deals. Who will be most affected? Around two-thirds of Europe's Russian gas imports are under long-term contracts, which the EU plans to ban by end-2027. The rest is spot trades. Russia supplied 19 per cent of EU gas imports last year, through LNG and via the TurkStream pipeline supplying Hungary and Slovakia. That is far below the roughly 45 per cent of Europe's gas that Russia supplied before its full-scale invasion of Ukraine in 2022. Russia's share is expected to fall further, to 13 per cent this year, after deliveries to Europe via Ukrainian pipelines stopped at the end of 2024. Most EU countries that previously received Russian pipeline supplies have switched to alternatives. Austria, which received Russian gas via Ukraine until late 2024, now imports gas from routes including via Germany and Italy, typically from a mix of suppliers. For Hungary and Slovakia, moving to alternatives will cost. Russian pipeline gas was sold at a 13-15 per cent discount to other options last year, according to analysis by the Center for the Study of Democracy. For LNG, the picture is different. Belgium, France and Spain import most of the Russian LNG entering Europe, and can more easily replace this with other supplies from other sources, such as the US, which the EU is under pressure from President Donald Trump to do. However, some Russian LNG is under long-term contracts that, unless interrupted, would run until as late as 2041. Companies with these contracts include TotalEnergies, SEFE and Naturgy. — Reuters
Reuters
16-05-2025
- Business
- Reuters
Explainer: How could the EU ban Russian gas?
BRUSSELS, May 16 (Reuters) - The European Commission will next month propose legal measures to fully phase out the EU's Russian gas imports by the end of 2027, and ban spot contracts with Russia by the end of this year. Here's how that could work. Sanctions are legally the easiest route for the EU to ban Russian gas and liquefied gas imports. However, they require unanimous approval from all 27 EU countries. Hungary and Slovakia, who want to maintain close political ties with Russia, have vowed to block gas sanctions. The two countries import it via the Turkstream pipeline, and say switching to alternatives would increase energy prices. As a workaround, the European Commission will in June propose alternative measures that can be approved by a reinforced majority of countries - and which can only be blocked by a group of at least four countries. In a closed-door meeting of EU countries' ambassadors last week, all bar Hungary and Slovakia welcomed the plan to ban Russian gas, EU diplomats said. Still, some raised concerns about the legal certainty of the EU plan, and its impact on energy prices. The Commission has declined to specify the type of legal tools it's working on. EU diplomats point to a few options. One would be to impose tariffs on Russian gas and LNG imports. While not an outright ban, tariffs would aim to make new Russian gas deals economically unfeasible. EU tariffs on Russian fertilisers offer an example of how this could work. There, the EU plans to impose a tariff that rises to 430 euros ($481.21) per ton within three years - a "prohibitive" level designed to effectively cut off imports. Such tariffs could also allow European companies with long-term Russian gas contracts to argue that EU regulation has changed to such an extent that the terms of their contracts are unsustainable, and invoke "force majeure" to exit these deals. Lawyers have warned, however, that companies could face financial penalties for doing this. Governments say more transparency on Russian gas trades will be crucial. To achieve this, the EU could use the "Union Database", a European Commission platform which tracks EU imports of biofuels. That tool could be re-purposed to track Russian gas and reveal which companies are trading it, allowing officials to target suppliers or traders that breach the ban. The Commission's June proposals will also include obligations for companies to disclose information on their Russian gas deals. Around two-thirds of Europe's Russian gas imports are under long-term contracts, which the EU plans to ban by end-2027. The rest is spot trades. Russia supplied 19% of EU gas imports last year, through LNG and via the TurkStream pipeline supplying Hungary and Slovakia. That is far below the roughly 45% of Europe's gas that Russia supplied before its full-scale invasion of Ukraine in 2022. Russia's share is expected to fall further, to 13% this year, after deliveries to Europe via Ukrainian pipelines stopped at the end of 2024. Most EU countries that previously received Russian pipeline supplies have switched to alternatives. Austria, which received Russian gas via Ukraine until late 2024, now imports gas from routes including via Germany and Italy, typically from a mix of suppliers. For Hungary and Slovakia, moving to alternatives will cost. Russian pipeline gas was sold at a 13-15% discount to other options last year, according to analysis by the Center for the Study of Democracy. For LNG, the picture is different. Belgium, France and Spain import most of the Russian LNG entering Europe, and can more easily replace this with other supplies from other sources, such as the U.S., which the EU is under pressure from President Donald Trump to do. However, some Russian LNG is under long-term contracts that, unless interrupted, would run until as late as 2041. Companies with these contracts include TotalEnergies, SEFE and Naturgy. ($1 = 0.8936 euros)
Russia Today
08-05-2025
- Business
- Russia Today
US and Russia discuss restarting gas flows to EU
Moscow and Washington have held discussions about resuming Russian natural gas exports to the EU, Reuters reported on Thursday, citing eight anonymous sources. The talks are reportedly part of broader efforts to end the Ukraine conflict. The supply of Russian gas to the EU slowed dramatically three years ago, hit by sanctions related to the conflict and following the sabotage of the Nord Stream pipelines. Russia's 40% share of European gas imports has fallen to 19%, currently consisting mainly of liquefied natural gas (LNG), with some supplies provided via the TurkStream pipeline. According to the news agency's sources, the discussions touched on US firms buying stakes in Russian energy giant Gazprom or in existing pipeline infrastructure in Ukraine. American companies could also serve as buyers, purchasing gas from Russia and selling it on to Europe to bypass political opposition, Reuters cited several sources as saying. Speaking in Brussels on Thursday, European Commission President Ursula von der Leyen called the prospect of restoring Russian gas supplies a 'mistake of historic dimensions' and stressed that 'we would never let it happen.' Kremlin spokesman Dmitry Peskov has noted that Moscow is ready to negotiate restarting gas exports to the continent. 'We know that some countries in Europe want to continue buying it from us,' he told Le Point in an interview last month. Russia has been seeking to diversify its energy export markets against the backdrop of Western sanctions and flagging European demand. Russian Deputy Prime Minister Aleksandr Novak announced on Thursday that Moscow and Beijing have agreed to speed up work on the Power of Siberia 2 gas pipeline project. The conduit will allow Russia to export up to 50 billion cubic meters (bcm) of natural gas to China annually. 'The final negotiations... regarding economic conditions are now underway,' he said. In addition to the Power of Siberia 2, Russia is looking into building an additional pipeline going through neighboring Kazakhstan, which combined would provide China with up to 100 bcm of gas annually.
Reuters
07-05-2025
- Business
- Reuters
Slovakia rejects EU plan to phase out Russian gas by end-2027
May 7 (Reuters) - Slovakia rejects European Commission plans to phase out Russian gas and other energy imports, Prime Minister Robert Fico said on Wednesday, adding the measures were "in this form unacceptable" to the Slovak government and would impact EU energy prices. The EU executive had said on Tuesday it would propose legal measures next month to phase out EU imports of Russian gas and liquefied natural gas by the end of 2027. The plans also touch on oil and include trade measures targeting Russian enriched uranium for nuclear power that would amount to a tax or levy on imports. The move is part of the EU's pledge to end its decades-old energy relations with former top gas supplier Russia after its full-scale invasion of Ukraine in February 2022. Fico said he respected attempts to reduce energy dependence on third countries but the Commission's proposals would harm the EU, raising prices in the bloc and damaging its competitiveness. "This is simply economic suicide to go to the point where neither gas, nor nuclear, nor oil, everything must end just because some new Iron Curtain is being built between the Western world and perhaps Russia and other countries," Fico said. Slovakia would work for changes in the legislative process, he said. The Commission's legal proposals due in June will require approval from the European Parliament and a qualified majority of member states - meaning one or two countries cannot block the plans. Slovakia receives Russian gas and oil supplies and has argued with Ukraine over its decision at the end of the last year to halt gas flows from the east through its territory. Fico said there were questions over what would happen if Slovakia canceled its long-term contract with Russian supplier Gazprom. Around 19% of Europe's gas still comes from Russia via the TurkStream pipeline and LNG shipments, down from roughly 45% before 2022. Slovakia's ministry says 10 of the bloc's 27 members imported Russian gas last year. The EU has imposed sanctions on most Russian oil imports but not on gas due to opposition from Slovakia and Hungary, which receive Russian pipeline supplies and maintain closer ties with Russia.
