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The European Commission is exploring legal options to end long-term Russian gas contracts


April, 15 2025
watermark Economic news

The European Commission is considering legal ways to terminate long-term gas supply contracts from Russia without paying fines. 


The EC analyzes the contracts in order to find out whether the companies that signed them can declare force majeure and terminate relations with Russian suppliers. In this way, Brussels hopes to avoid the need to pay compensation to Russian companies. One of the EU sources noted: «If the main goal is not to pay Russia, then paying compensation will undermine the whole process.»


It is not known which long-term contracts are in question, since such agreements are usually not public, and their terms can vary greatly. Officials also believe that the conflict in Ukraine may not be sufficient grounds for declaring force majeure.


This plan is being developed as part of the EC's strategy to phase out Russian energy sources by 2027, and Brussels is due to present a corresponding roadmap in May. Despite a significant decrease in pipeline gas imports from Russia to the EU, the volume of liquefied natural gas supplies has increased by 60% over the past three years. Hungary and Slovakia account for most of the remaining imports of Russian pipeline gas to the EU, and both countries have criticized the bloc's policy on energy supplies from Russia.


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