EU Commission Proposes Phased Ban on Russian Gas: Exceptions Revealed
EU aims to reduce natural gas imports from Russia
Ready to say goodbye to Russian gas in Europe? With the EU Commission announcing a multi-stage plan to ban Russian gas imports, that just might happen. But while everyone's talking about the ban, let's dive into exceptions and disclosures that matter.
Ursula von der Leyen, EU Commission President, has made it clear: it's time to turn off the taps and put the era of Russian fossil fuels in Europe to bed for good. Last year, Russian pipeline gas and liquefied natural gas (LNG) accounted for nearly 19% of the 27 European Union (EU) countries' gas imports[1][3]. But what does this mean for the bloc and individual nations?
Here's the tea, spilling the beans:
No More New Deals with Russia, Starting 2023
From next year, no European companies will be allowed to ink fresh deals with Russian gas suppliers[1]. However, there are caveats, and exceptions, because life's never that simple, right?
Uncertain Future for Landlocked Countries and Existing Long-term Contracts
Landlocked countries such as Hungary and Slovakia could continue to import large quantities of gas from Russia due to their inability to easily replace Russian pipeline gas[1][3][5]. Likewise, existing long-term contracts are set to receive a longer transition period to comply with the "so long, Slava" era of Russian gas in the EU.[1]
Germany can rejoice as the proposed EU law would rule out any need for former pipeline Nord Stream 2 to resurface[1].
A Rose by Any Other Name...
Not a new wave of sanctions, the Commission's proposal relies on an article in the EU's basic treaties, emphasizing the security of energy supply in the Union[1]. This little legal workaround aims to circumnavigate a veto by countries like Hungary and Slovakia, since this legislative proposal doesn't require unanimous approval[1].
- European Union
- Russian Gas
- EU Commission
- Nord Stream
- Sanctions
- Hungary
- Slovakia
Fine Print and Enrichments:
The exceptions for the EU's proposed gas ban include:
- Short-term Contracts: Imports under these contracts will be restricted by 17th June 2026. The proposal allows for imports under specific circumstances, such as contracts struck before June 17, 2022[3][5].
- Landlocked Countries: These European nations will be granted additional exceptions, allowing them to maintain long-term agreements with Russia until the end of 2027 or potentially January 1, 2028[3][5].
- Specific Circumstances: The proposal proposes exceptions for imports via pipelines or as seaborne liquefied natural gas under certain preconditions, but the specifics are yet to be outlined[3].
These exceptions form part of the Commission's three-stage plan to phase out Russian gas imports by 2027, as outlined in the REpowerEU Plan[1][2].
- Despite the EU Commission's proposal for a phased ban on Russian gas, short-term contracts will be allowed to continue until June 17, 2026, under certain circumstances, particularly those contracts agreed before June 17, 2022.
- Landlocked countries within the EU, such as Hungary and Slovakia, will be granted additional exceptions, enabling them to maintain long-term agreements with Russia until the end of 2027 or potentially January 1, 2028.
