EU Unveils Plan to Phase Out Russian Energy

The European Commission plans to present a roadmap by May 6 detailing how the EU will phase out Russian fossil fuel imports by 2027, aiming to address internal divisions and external trade tensions. The proposal may permit European companies to exit long-term Russian gas contracts without facing penalties, as the bloc seeks greater energy independence. In 2024, Russian energy still comprised 19% of EU gas and LNG supplies, with Russian LNG imports rising 18% last year despite a sharp drop in pipeline deliveries. Some EU countries, notably Hungary, resist further sanctions on Russian energy, reflecting ongoing political disagreements. The U.S. has become the EU's top LNG supplier, but recent U.S. tariffs and over-reliance concerns are prompting efforts to diversify sources. Meanwhile, European gasoline exports to the Americas, particularly the U.S., have surged amid improved market sentiment following tariff disruptions.