The EU Energy Crisis: Four Member States Activate First Level of Emergency Gas Plans
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Key takeaways:
- The European Union, the largest importer of Russian natural gas, is facing an energy crisis. Russia recently demanded payment for natural gas in Roubles and suspended supplies to Poland and Bulgaria when they did not comply.
- Under EU law, in response to any gas shortages, Member States could prioritize households and essential social services and restrict supplies to industries.
- Parties should assess their contractual obligations and the potential consequences of restricted gas supply on their contracts. Parties should consider the applicability of force majeure, material adverse change and hardship provisions and whether any insurance policies are in place that might provide cover.