Germany’s Economy Ministry has urged the nationalized company SEFE (formerly a Gazprom unit, nationalized by the German government following Russia’s invasion of Ukraine) to terminate its long-term LNG supply contract with Russia before 1 January 2027.
The import arrangement, covering 2.9 Mt/year, is set to run until the end of 2040 and does not include a cancellation option. According to the ministry, one possible way to end the Russian LNG contract would be to invoke force majeure. The ministry noted that this legal clause, which allows companies to suspend contractual obligations, could be applied in light of the European Union’s latest sanctions against Moscow and the bloc’s ongoing effort to phase out Russian energy.
SEFE recently stated that it would assess the impact of the new EU sanctions, but it has not yet taken any action.