EU-Russia gas row: Legal fears amid sanctions shift
The EU's plan to end its reliance on Russian gas has concerned some in the industry that they'll still face legal repercussions for breaching long-term contracts with Moscow.
Companies were hoping that the full legal text, particularly from the G7 summit in Canada, would offer assurances on how they could avoid being forced to pay compensation if they could no longer purchase gas ordered from Russia.
The proposal hinges on a "somewhat shaky force majeure premise," which is meant to refer to a situation no one could have foreseen.
At the G7 summit in Canada, European Commission President Ursula von der Leyen also withdrew her proposal to lower the cap on the price of Russian oil, part of a new wave of sanctions against Vladimir Putin's regime.
One outcome of the escalating conflict in the Middle East has been that oil prices rose above the $60 per barrel cap, meaning Russia is now losing out. (The EU had attempted to reduce the cap to $45).
Meanwhile, at the NATO summit in The Hague, a dramatic turn of events could unfold: pro-Russian Prime Minister Robert Fico might announce, having hinted at it, that he's prepared to reject the 5% of GDP threshold for military spending, a demand made by Trump.
This would also influence global oil prices and put the entire North Atlantic Alliance, as well as the broader West, in a completely unproductive internal predicament.
Translation by Iurie Tataru
