Germany finds legal grounds to terminate the gas contract with Russia
The German Ministry of Economy announced the possibility of terminating the contract between the nationalized Gazprom subsidiary SEFE and the Russian supplier of liquefied natural gas under force majeure conditions.
According to the German publication Merkur, the contract signed until 2040 provides for the supply of 2.9 million tons of LNG annually. However, under the new European RePowerEU plan and the latest package of sanctions against Russia, the German government considers it possible to terminate this agreement early. Germany now instructs SEFE to purchase only the minimum legally necessary amount of LNG.
By nationalizing SEFE in 2022, Germany took measures to reduce dependency on Russian energy resources, which became critical after the start of the war in Ukraine and Gazprom’s reduction of exports to Europe. Despite this, the contract with Gazprom still obliges the German company to pay for gas even in case of supply cessation.
Notably, the decision to terminate the contract is part of broader EU efforts to diversify energy sources and strengthen energy security in the region. In November 2022, Uniper already made a significant payment to the German budget as compensation for losses related to undelivered gas supplies.
| Year | LNG Purchase (Batches) |
|---|---|
| 2025 (first half) | 25 batches |
