Europe struggles to end Russian gas supply contracts without paying penalties to Moscow. Force majeure could be invoked

Brussels is looking at legal options that would allow European companies to break long-term contracts to supply Russian gas without paying penalties to Moscow, the Financial Times reports, quoted by Agerpres.

The European Commission has studied the contracts as well as the possibility of invoking a “force majeure” clause that would allow importers to end their obligations without paying additional compensation, several officials close to the case told the Financial Times.

“If the basic idea is not to pay Russia, then paying compensation would defeat the purpose,” one European official said.

The plan highlights the EU’s difficulties in getting rid of Russian energy and depriving the Kremlin of the revenue it needs for its war in Ukraine. Russian gas currently accounts for 11% of pipeline supplies to the bloc, compared with two-fifths in 2022, but Russian liquefied gas supplies to Europe have grown rapidly in the past three years.

Commission lawyers are weighing legal options as part of a strategy to see the bloc phase out Russian fossil fuels by 2027. Brussels’ plan comes at a delicate time for the EU, which is also trying to reach an energy deal with the EU to counter tariffs announced by President Donald Trump.

The US is already the bloc’s largest supplier of liquefied natural gas, seen as the ideal replacement for any reduction in the share of Russian fuel.

According to data published by the Centre for Research on Energy and Clean Air (CREA), between February 2024 and February 2025, the EU paid 21.9 billion euros for Russian oil and gas.

The publication of the EU strategy, which was initially scheduled for early this year, has been postponed due to concerns that the legislation would be blocked by Hungary and Slovakia, which are now responsible for the bulk of Russian gas imports through pipelines into the EU. The strategy has also been delayed amid discussions about the future of the Nord Stream gas pipeline and the inclusion of gas purchases in trade talks with the Trump administration.

“It’s complicated,” said a European diplomat. “What is the US’s place in all this? How do we diversify?” the diplomat added.

However, European Commission President Ursula von der Leyen told the Financial Times that the plan should be published “within three to four weeks.”

Despite pressure from Brussels, EU countries are reluctant to force companies to break liquefied gas contracts with Russia, amid concerns that it will lead to higher prices at a time when companies are facing geopolitical problems and high costs.

The Commission has given member states the power to prevent Russian and Belarusian operators from introducing liquefied natural gas into port infrastructure or sending their gas through pipelines in the EU, but ministers have complained that this does not give them the legal power to force companies to break the contracts.

The problem for Commission lawyers is that these are confidential contracts and the terms tend to vary from case to case. Using the war in Ukraine as a reason to declare force majeure may not be legally sufficient, a European official said.

The Bruegel think tank recently came out in favor of tariffs rather than a complete ban on Russian gas imports, arguing that the former would generate revenue for the EU and force Russian suppliers to cut prices to remain competitive. Unlike sanctions, tariffs only need the support of a majority of member states to be approved.

“An effective common solution regarding Russian gas imports is urgently needed, otherwise Russia could once again use the option of selective deliveries to create divisions among member states,” Bruegel analysts argue.