EU Seeks Legal Methods to Exit Russian Gas Contracts Without Penalties

The European Commission is exploring legal avenues to allow energy companies to terminate long-term contracts with Russian gas suppliers without facing significant penalties, focusing on the invocation of force majeure clauses. This initiative is part of the EU's broader strategy to eliminate reliance on Russian fossil fuels by 2027, especially in light of the ongoing war in Ukraine. Despite a decrease in pipeline gas imports, Russian liquefied natural gas (LNG) imports have surged, complicating efforts to cut ties with Moscow. The roadmap for this transition has faced delays due to internal disagreements among EU member states, particularly from Hungary and Slovakia, which still rely heavily on Russian gas. Some EU officials have raised concerns about the sufficiency of the war in Ukraine as a legal basis for invoking force majeure. Additionally, there are indications from business leaders that some in Europe might support a return to Russian gas imports if peace is achieved in Ukraine, highlighting the complexities of the EU's energy strategy.