EU, Complete breakup with Russian energy by 2027…Short-term contracts prohibited from the end of this year

European Union pushing for a break from Russian fossil fuels (Source: AFP)

The European Union (EU) has detailed plans to completely cease energy imports from Russia by 2027. Starting at the end of this year, short-term contracts for Russian natural gas and oil will be banned, and long-term supply contracts are also set to be phased out.

The EU Commission announced the 'REPowerEU' roadmap on the 6th, laying out specific measures to fully implement its commitment to end reliance on Russian fossil fuels. New energy contracts with Russian suppliers will be completely banned by the end of 2025, and short-term contracts already in place will be terminated by the end of this year. As a result, about a third of the total Russian gas imports are expected to decrease within the year.

The EU plans to sequentially terminate the remaining long-term contracts by the end of 2027. To avoid legal disputes arising from contract terminations, nations are in a position to notify suppliers of contract cancellations based on the 'force majeure' clause.

These measures are a response to continued energy dependence following Russia's invasion of Ukraine. The EU has previously cut Russian coal imports and significantly reduced crude oil imports, but some countries have been criticized for increasing Liquefied Natural Gas (LNG) imports. In fact, as of last year, 19% of the total EU gas consumption was Russian, and the cost of fossil fuel imports amounted to approximately 23 billion euros.

Dan Jorgensen, EU Energy Commissioner, said, “We will no longer waver in the face of Russia's threats,” adding that, “The aim is to cut off the Kremlin's war fund.” EU Commission President Ursula von der Leyen also stressed, “We will break ties with unreliable suppliers and will not finance wars with energy.”

The EU plans to present specific legislative proposals next month, with key measures likely to pass by 'Qualified Majority Voting.' This system allows a bill to pass with the support of countries representing more than 55% of the total member states and 65% of the total EU population. It is expected that some countries, such as Hungary and Slovakia, which prioritize relations with Russia, will oppose it; however, measures that require unanimous sanctions can adopt a different approach.

The EU intends to strengthen cooperation with reliable suppliers after the break with Russia. Energy negotiations with the United States are a key focus, and expanding imports of U.S. LNG is also under discussion. Politico anticipates that U.S. LNG production will double, and the EU is expected to actively use this as an alternative resource.