The global gas industry is reportedly affected by the changing decisions made by the European Commission on the reduction of gas imports from Russia. The European Commission is ready to consider a larger American liquefied natural gas for substitution of Russian supplies, stating that this action will help reduce the trade deficit between the Eurozone and the USA — a demand of President Donald Trump.
The Commission did not specify the legal options it is considering to allow European companies to withdraw from current contracts with Russia. Meanwhile, some EU sector leaders express support for a return to Russian gas, as the Union continues to reinforce the break with decades-old energy ties with Moscow.
According to current data, about 19% of gas in Europe comes from Russia via the Turkish Stream gas pipeline and tankers of liquefied natural gas. This is down approximately 45% compared to 2022. The USA maintains pressure on Russia to achieve a settlement with Ukraine, which, in the event of success, could lead to the lifting of energy export bans and the easing of sanctions.
In the European Parliament and for many countries of the Union, the approval of new legislative proposals is necessary. The EU introduced sanctions on coal and oil, maritime carriers, but did not impose them on gas due to the opposition of Slovakia and Hungary, which receive Russian supplies via pipelines and believe that switching to other suppliers would raise energy prices.
The European Commission announced its intention to propose legislative measures for the gradual cessation of gas and liquefied natural gas imports from Russia to the European Union by the end of 2027. Managing such contracts will lead to serious legal consequences for buyers. In 2021, the EU imported 32 billion cubic meters of Russian gas through pipelines and 20 billion cubic meters of liquefied Russian gas.
The Commission also plans to propose measures related to enriched uranium from Russia, including restrictions on new agreements within the framework of Euratom. The Eurozone is also calculating on renewable energy for reducing consumption of fossil fuels. Important details include contracts with "Gazprom", which presuppose punitive sanctions for refusal to accept gas supplies.
Taking into account global market trends, the effect of the gradual cessation of Russian gas on energy prices in Europe will be limited.
