EU considers ways to ban new Russian gas contracts, Reuters reports

The European Commission is exploring options to legally prohibit EU companies from signing new contracts for the supply of Russian gas, Reuters reported on April 22, citing an undisclosed senior EU official.

The EU is also considering ways to allow companies located in member states to terminate existing gas supply contracts with Russia without penalties, the official told Reuters.

Following Russia's full-scale invasion of Ukraine in 2022, Europe began to wean itself off Russian fossil fuels to stifle Russia's revenue that finances its war chest.

The European bloc plans to completely phase out Russian fossil fuels by 2027, and the European Commission is expected to provide a plan by May 6 – a deadline postponed from March amid uncertainty over U.S. President Donald Trump's tariff policies.

The ban on new contracts aims to reduce European companies' spot purchases of Russian liquefied natural gas (LNG). Although Russian pipeline gas supplies have declined sharply since the all-out war, the EU increased its imports of Russian LNG last year.

The EU's imports of Russian LNG in 2024 reached a record level, despite the bloc's efforts to reduce its gas dependence after Russia's full-scale war against Ukraine, according to the Financial Times.