Europe Plans End-Date to Long-Term Gas Deals Favored by Russia

The European Union is planning a hard deadline to end long-term contracts to import natural gas as part of its green shift, a setback for top supplier Russia.

Сensor.NET report citing Bloomberg.

The plan -- set to be published on Wednesday -- will run counter to calls by Russia, which supplies about a third of Europe’s gas needs. The nation -- which is building up troops on the border with Ukraine -- has long argued in favor of long-term contracts and has repeatedly asked the EU to sign more such deals as a condition to extend an agreement to flow the fuel via its former Soviet Union partner after 2024.

Addressing concerns by some member states that the Kremlin is using gas as a political weapon, the EU executive’s proposal will also enable nations to react more effectively in crises.

Read more: COVID-19: EU removes Ukraine from 'green list'

EU heads of government are due to discuss the planned measures at a summit in Brussels on Dec. 16.

The risks for Europe are mounting this winter with gas stockpiles dropping to record lows for this time of the year and no end to the crisis in sight. The heightened tension between Russia and Ukraine threaten to further crimp supply, increasing the risk the energy crunch will persist into the next heating season.