EU unveils plans to switch from Russian fuel to US LNG

On May 6, the EU will unveil a strategy to phase out purchases of Russian fossil fuels. António Costa, President of the European Council, believes the initiative will send a strong political message to businesses. The plan will encourage regional importers to secure more contracts for liquefied natural gas (LNG) from the United States.

Since 2022, the EU has dramatically reduced its reliance on Russian fuel, from 40% to 19%. A new strategy will open up more opportunities for US suppliers and strengthen the case for renegotiating existing Russian contracts, Costa said.

The United States is now ranked as the EU's third-largest gas provider. The Trump administration has long been working to strengthen this position, advocating for increased European imports of US fuel in exchange for trade concessions.

The strategy being developed by the European Commission may include provisions that allow companies in the region to tear up long-term contracts with Russia. It may also facilitate new tariffs to be imposed without requiring unanimous approval from all member states, as reported by Rigzone.