Gradual removal of Russian fossil fuel purchases will push companies to get more liquefied natural gas(Lng) by the USAaccording to EU Council President Antonio Costa.
The EU has planned to present a plan to end Moscow energy markets on May 6, after Russia had drastically reduced gas exports to Europe after the invasion of Ukraine in 2022, causing unprecedented increases in fuel prices and electricity.
At the same time, the EU, whose dependence on Russian gas shrinks to about 19% of total supplies last year, compared to more than 40% before the war, will continue to reduce its imports, Costa told Bloomberg in an interview.
“This creates market space for imports from other suppliers, which means new opportunities for the United States,” he said.
The measures come at a time when the EU is investigating a possible agreement with the US to resolve their commercial dispute. US President Donald Trump has repeatedly called on Europe to buy more American energy products if the block wants to avoid duties.
The US is today the third largest EU natural gas supplier.
While US-EU trade negotiations are being held under the leadership of the European Commission, decisions on the signing of new wetlated gas market contracts are in the hands of companies and depend on their view of market and prices. Many have long -term contracts with Russia, according to Costa.
“The political message given by the Commission is that there are good reasons for European companies to find good prices in the US,” he said. “There is a great opportunity to increase the imports of liquefied natural gas from the US.”
The roadmap that processes the EU executive semus aims to provide European companies tools to denounce long -term contracts with Russia. The Commission is considering recommending the use of trade -related measures, such as quotas or EU duties, Bloomberg News said.
While imposing sanctions on imports of Russian gas would be, in theory, the strongest legal tool for EU buyers to declare force majeure and end markets, the EU has not proposed this measure so far because it would not take the required support. Commercial media, however, can be approved by a special majority.