The EU must stop Russian gas

The proposed rule allows all EU member states to be able to ban companies from Russia and Belarus from buying capacity at gas pipelines and terminals for liquefied natural gas (LNG), writes the Financial Times.

The proposal could help energy companies from the EU get out of long contracts they have with Russian or Belarusian companies, which buy space in gas pipelines or at LNG terminals. Thus, the EU companies will not pay large compensations to the counterparties.

In the draft of the new rules, it is stated that EU member states can completely or partially stop Russian and Belarusian gas operators’ access to Europe’s gas network, writes the FT.

Although there has been a sharp reduction in the EU countries’ use of gas from Russia after the invasion of Ukraine, about a tenth of gas consumption originates from either Russia or Belarus. Austria and Hungary stand out with high consumption.

With the new rules, the EU wants to pressure member states to stop gas imports. Countries such as Poland and the Baltic states are particularly vocal about their desire for tough measures against Russia.

The EU has a goal of being completely disconnected from Russian gas by 2027. In the third quarter of 2023, Russia accounted for around 12 percent of the EU’s total gas imports. After China, Belgium and Spain are the world’s largest importers of Russian LNG.