The European Union must stop Russian gas

The European Union must stop Russian gas

The proposed rule would allow all EU member states to block companies from Russia and Belarus from purchasing production capacity at gas pipelines and liquefied natural gas terminals, the Financial Times reported.

This proposal could help EU energy companies exit long contracts with Russian or Belarusian companies, which buy space in gas pipelines or in liquefied natural gas terminals. Therefore, EU companies will not pay significant compensation to counterparties.

The new draft rules stipulate that EU member states can completely or partially block Russian and Belarusian gas operators from accessing the European gas network, the Financial Times writes.

Despite the sharp decline in European Union countries’ use of gas coming from Russia after the invasion of Ukraine, about a tenth of their gas consumption comes from either Russia or Belarus. Austria-Hungary is characterized by its high consumption.

With the new rules, the European Union wants to pressure member states to stop gas imports. Countries such as Poland and the Baltics are particularly vocal about their desire to take tough action against Russia.

The European Union aims to completely separate from Russian gas by 2027. In the third quarter of 2023, Russia accounted for about 12 percent of the EU’s total gas imports. After China, Belgium and Spain are the largest importers of Russian liquefied natural gas in the world.

See also  Retirement after conflict in delivery
Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

Leave a Reply

Your email address will not be published. Required fields are marked *