EU postpones Russian energy retreatment scheme

(MENAFN) The European Union has once again delayed unveiling its strategy to fully cut energy ties with Russia, the Financial Times reported on Tuesday. The delay comes as internal disagreements continue over the fate of the damaged Nord Stream 1 and 2 pipelines and growing pressure from industry leaders to restore access to affordable Russian gas.

Although Nord Stream 1 and parts of Nord Stream 2 were sabotaged in 2022, one section of Nord Stream 2 remains intact, prompting renewed discussions about the possibility of reviving the pipeline — particularly as diplomatic efforts between the U.S. and Russia to resolve the Ukraine conflict gain traction.

A roadmap to phase out Russian energy by 2027 was initially expected in February, then pushed to March, and is now likely to be released in May. According to the FT, uncertainty over U.S. President Donald Trump’s proposed trade tariffs has also complicated planning, as future EU-U.S. energy cooperation remains unclear.

“It’s chaotic,” one EU diplomat said. “We’re trying to figure out how to diversify and where the U.S. fits in all of this.”

Brussels is reportedly exploring legal options to help EU firms exit long-term gas contracts with Russia without incurring heavy penalties. However, proposed measures could be blocked by Hungary and Slovakia, who still rely on Russian pipeline gas.

Despite sanctions and supply cuts since 2022, Russian energy continues to play a role in Europe. In 2024, Russia still supplied about 19% of the EU’s gas and LNG needs. While U.S. gas imports have filled some of the gap, liquefied natural gas from Russia has quietly increased.

EU officials have not finalized what actions will be included in the upcoming plan. Some experts suggest imposing tariffs on Russian gas imports could help accelerate the transition.

Meanwhile, European industry leaders are calling for a return to Russian energy. Reuters reported that Germany’s chemical sector is in crisis and needs cheaper gas. French energy companies Engie and Total have also expressed openness to resuming Russian imports.

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