The European Commission (EC) is reviewing legal mechanisms that would allow European energy companies to exit long-term contracts with Russian suppliers without incurring significant financial penalties. According to three EU officials cited by the Financial Times, the Commission is investigating whether the contracts could be invalidated under “force majeure” provisions—typically used when unforeseen circumstances prevent the fulfillment of contractual obligations.

One official emphasized that compensating Russia would defeat the broader EU objective of financially isolating Moscow. The initiative is part of the EU’s broader roadmap to eliminate reliance on Russian fossil fuels by 2027. Although pipeline gas from Russia has dropped to just 11% of total EU imports—down from nearly 40% in 2022—Russian liquefied natural gas (LNG) imports have surged over the past three years.

The Commission has not formally commented on the report. However, the effort to terminate gas contracts is unfolding at a sensitive time, as the EU seeks to reach an energy agreement with the United States in response to President Donald Trump’s tariff policies. The U.S., already the EU’s top LNG supplier, is seen as a logical alternative should Russian energy imports be further reduced.

According to data from the Centre for Research on Energy and Clean Air, the EU paid Russia €21.9 billion for oil and gas between February 2024 and February 2025. While coal imports from Russia have been banned, and 90% of oil imports are under embargo, natural gas imports remain unrestricted. Still, overall Russian gas deliveries to the EU are at their lowest levels since 2022, despite a 60% rise in LNG imports since then.

The release of the EU’s energy roadmap, initially scheduled for March, has been delayed by internal disputes. Key concerns include the risk of opposition from Hungary and Slovakia, both of which still depend heavily on Russian pipeline gas. Hungary’s government has openly opposed gas sanctions, which require unanimous support from all 27 EU member states.

Further delays stemmed from renewed discussions around the future of the Nord Stream pipeline between Germany and Russia, and from ongoing negotiations with the U.S. regarding a broader energy and trade deal. A European diplomat described the situation as “a mess,” questioning how the EU plans to diversify energy sources amid geopolitical uncertainty.

Despite calls from Brussels to scale back Russian LNG imports, many EU member states are reluctant to compel companies to terminate existing agreements due to fears of market instability and rising energy costs. Although the Commission has granted member states the authority to restrict Russian and Belarusian access to port infrastructure and pipelines, these measures fall short of providing a clear legal route to annul contracts.

The challenge for EU lawyers is the secrecy and variability of energy contracts. Invoking the war in Ukraine as a justification for “force majeure” may not hold up legally, an EU official cautioned. French, Spanish, and Belgian ports remain key entry points for Russian LNG, much of it originating from the Yamal LNG plant, which has ongoing deals with major energy firms such as Shell and Naturgy.

Meanwhile, the Brussels-based think tank Bruegel has argued in favor of imposing tariffs on Russian gas rather than implementing a full ban. Such a move would require only a majority vote among EU countries and could generate revenue while pressuring Russian exporters to lower prices. Bruegel warned that without a unified EU approach, Russia could exploit energy divisions among member states by offering selective gas supplies.