EU unveils plans to phase out Russian gas
Photo: Antonio Costa (Getty Images)
The publication of the EU's roadmap for the gradual phase-out of Russian fuel purchases will serve as a signal for companies. They should buy more liquefied natural gas (LNG) from the United States, Bloomberg reports, citing President of the European Council, Antonio Costa.
The bloc of 27 countries is set to present its plan on May 6. The EU, whose dependence on Russian gas has decreased since 2022, will continue to reduce its imports, Costa said.
"This creates space in the market to import from other suppliers, which means new opportunities for the United States," the President of the European Council stated.
The measures are being taken at a time when the EU is exploring the possibility of reaching an agreement with the US to resolve a trade dispute. US President Donald Trump has repeatedly urged Europe to buy more American energy supplies if the bloc wants to avoid tariffs.
Currently, the US is the third-largest supplier of gas to the EU.
Private contracts
While trade negotiations between the US and the EU are being led by the European Commission, decisions about signing new LNG purchase contracts with the US lie in the hands of companies and depend on their views on the market and prices. According to Costa, many of these companies have long-term contracts with Russia.
"The political signal that the commission is giving is that there are good reasons for European companies to find good prices in the US," the President of the European Council said. "There's a great opportunity to increase LNG imports from the US."
The roadmap being developed by the European Commission aims to offer European companies tools to break long-term contracts with Russia. The Commission is considering recommending the use of trade measures, such as quotas or tariffs at the EU level.
Although sanctions against the import of Russian gas could theoretically become the strongest legal tool for EU buyers to declare force majeure and halt purchases, the EU has not yet proposed this measure as it would not receive the necessary unanimous support due to Hungary and Slovakia. However, trade instruments can be adopted by a qualified majority.
