EU's Strategic Break: Phasing Out Russian Gas

The European Commission is set to unveil a major proposal next month targeting the phase-out of Russian gas. According to a draft document accessed by Reuters, the EU plans to ban new contracts by the end of 2025 and imports under existing ones with Moscow by 2027.

While the roadmap aligns with the EU's commitment to end Russian fossil fuel imports post Russia's 2022 Ukraine invasion, implementation faces hurdles due to dissent from Slovakia and Hungary. Their reliance on Russian pipeline supplies underscores their anxiety about an energy price surge.

With about 19% of Europe's gas coming from Russia, the EU remains cautious about the transition's economic impact. The Commission is exploring legal mechanisms to navigate existing contracts with Gazprom and is investigating opportunities to increase U.S. LNG imports amid shifting geopolitical dynamics.

(With inputs from agencies.)