REPowerEU Continues to Move Away from Russian Gas & Fossil Fuels

As part of its updated REPowerEU strategy, the European Commission will introduce a roadmap to phase out Russian fossil energy, including liquefied natural gas (LNG), on 6 May during the European Parliament. Although the plan outlines long-term goals, it will not include immediate legal proposals, with more legislative steps expected in the future.

This roadmap will address many challenges around existing long-term gas contracts, which are legal through 2049. It will explore ways to protect EU companies from penalties if they exit any Russian agreements early. Another major component of this plan will be the inclusion of LNG, with Russian supplies accounting for 20% of the EU’s 100 billion cubic meter LNG imports in 2024, falling to 16% in Q1 of 2025.

However, these legal complexities are further compounded by the inclusion of LNG. Terminating supply agreements could trigger international arbitration and raise treaty concerns, especially regarding member states’ rights to determine their energy mix.

Initially, the roadmap to phase out Russian fossil energy was expected in late February; however, there were worries that proposing restrictions on the supply of Russian fossil energy would cause the EU to become more vulnerable to US pressure to purchase its energy. With this plan soon to be proposed, the EU will reaffirm its position on moving away from Russian gas and fossil fuels.