Germany urges SEFE to terminate Russian LNG contract
Kyiv • UNN
Germany has called on the nationalized company SEFE to terminate its long-term contract for the supply of LNG from Russia. The contract for 2.9 million tons per year is valid until 2040, and its cancellation is estimated at 10 billion euros.
Germany's Ministry of Economy has called on the nationalized company SEFE to terminate its long-term contract for the supply of liquefied natural gas from Russia's Yamal. One way to terminate the agreement could be to declare force majeure, the ministry said in a statement. This is reported by Bloomberg, writes UNN.
Details
The contract for 2.9 million tons per year is valid until 2040 and currently does not provide for the possibility of cancellation. SEFE has been criticized for adhering to it, and the estimated cost of cancellation reaches about 10 billion euros. Last month, the company stated that it would study the consequences of new EU sanctions, but has not yet taken any steps.
The ministry notes that the legal provision of force majeure may come into force amid the latest sanctions and the European integration course of abandoning Russian energy.