EU Delays Launch of Russia Power Roadmap as It Weighs US Pivot

The European Union delayed the discharge of a plan to part out Russian fossil fuels because it weighs the influence of the US administration’s pivot on Ukraine, struggles to decrease vitality costs and strives to take care of unity amongst member states.

The European Fee dropped the publication of a roadmap – which was meant to stipulate the EU’s path for changing Russian vitality – from its schedule on Wednesday, after beforehand planning to launch it on March 26. Whereas it mentioned work on the phaseout plan continued, no new date was specified for its publication.

The postponement comes a day earlier than an emergency summit of EU heads of presidency, who will focus on mobilizing a whole lot of billions of euros in further financing as they search to assist Ukraine after President Donald Trump pulled again US dedication to European safety.

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Hungary and Slovakia – whose leaders are pleasant with Russia’s Vladimir Putin – have expressed diverging views on how the EU ought to reply to the geopolitical shift, and the transfer to delay plans on Russian vitality imports could assist to keep away from antagonizing member states at a crucial second.

“The roadmap is just not within the indicative planning, however it’s nonetheless on and being ready; solely the timing modified in gentle of newest geopolitical developments,” mentioned Anna Kaisa Itkonen, the fee’s vitality spokesperson.

The delay added to a drop in European gasoline costs on Wednesday.

Futures have been liable to sharp swings not too long ago as financial and geopolitical uncertainties mount. Larger gas consumption this winter and the top of a transit deal between Russia and Ukraine have intensified the problem of replenishing Europe’s gasoline stockpiles, which dropped to the bottom since 2022. 

Whereas pipeline gasoline provides from Russia cowl lower than 5 p.c of Europe’s gas wants after most main routes have been closed since 2022, the nation stays the second largest provider of LNG to the EU. Purchases hit a document final yr, with Spain, France and Belgium being the most important consumers. 

Whereas sanctioning Russian gasoline would in concept be the strongest authorized device to finish imports, the EU has stopped in need of proposing such a measure as a result of it wouldn’t get the required unanimous help amid opposition from Hungary and Slovakia. The plan was to depend on commerce measures as a substitute, as these could be adopted by a professional majority. 

However even that strategy may face pushback amid considerations over potential value will increase and the continued reliance of some nations on Russian gas, in response to EU diplomats with information of the discussions. There are additionally doubts whether or not commerce measures apart from sanctions would legally act as a power majeure to extricate corporations from long-term contracts with Russia.

A primary avenue for lowering reliance on Russia could be to extend imports from the US, which European officers have additionally expressed considerations about.

“The delay to the publishing of the roadmap is not any shock as Europe continues to be closely reliant on Russian LNG and eliminating any gasoline in the midst of tariff negotiations with the US places Europe in a troublesome place,” mentioned Florence Schmit, an vitality strategist at Rabobank.