The European Union appears poised to move ahead with plans to phase out Russian gas imports by the end of 2027. Earlier this year, the EU delayed releasing its “road map” for ending purchases of Russian fossil fuels to assess the impact of US efforts to end the war in Ukraine. 

EU officials plan to propose in June a ban on all gas purchases under new deals with Russia and existing spot contracts, which account for about a third of imports. The European Commission will also adopt measures next month to end the remaining imports of Russian pipeline and LNG gas tied up in long-term contracts. 

Ending Europe’s longstanding reliance on Russian gas will open the door for more LNG imports from the US, which President Donald Trump and the previous Biden administration have sought. The EU is said to expect the bloc to be largely shielded from any price increases as a wave of new LNG supply hits the global market in coming years. —Philip Lagerkranser

What You Need to Know Today

Austria’s Erste Group Bank agreed to buy much of Banco Santander’s operations in Poland for about €7 billion ($7.9 billion), its biggest deal ever. The transaction involves acquiring 49% of Santander Bank Polska and taking full ownership of the Spanish lender’s Polish asset management unit. The deal cements Erste’s position as the biggest bank in Central and Eastern Europe, and frees Santander up to pivot toward the Americas. 

Romania’s Prime Minister Marcel Ciolacu is resigning after far-right opposition leader George Simion scored a resounding first-round victory in the presidential election. Ciolacu said the government had lost legitimacy and needed a complete reset. Simion, an ultranationalist who has aligned himself with Trump, has advocated for a hold in military aid to Ukraine. 

Switzerland’s inflation dropped to zero in April, bolstering expectations that the central bank will reduce interest rates further. Imported goods, particularly energy and fuel, drove consumer prices lower amid a strong franc. Another 25 basis-point cut by the Swiss National Bank in June would take the benchmark rate to zero, and some economists are expecting the country could return to negative rates. 

Saudi Arabia’s first initial public offering since tariff-induced turmoil hit markets last month is off to a strong start, with packaging manufacturer United Carton Industries drawing more than $20 billion in orders. The IPO was priced at 50 riyals per share, the top end of a marketed range. The Middle East has been an IPO hotspot in recent years, even as global volumes faltered, but bankers have warned that lower oil prices pose a risk. 

Israel’s security cabinet voted to intensify military operations in Gaza and call up of tens of thousands of extra reservists. The decision early today was said to be unanimous to expand fighting in the Palestinian territory. Israel’s move comes a week before Trump visits the Gulf, his first scheduled foreign trip since returning to power in January.

Trump suggested the US could strike trade deals with some countries as soon as this week, without specifying which ones. He also says aides are having conversations with counterparts from China, which has been a focus of his trade war. Financial markets have steadied in past weeks on hopes that the Republican might ratchet down trade tensions with Beijing. 

Donald Trump on the South Lawn of the White House on May 4. Photographer: Chris Kleponis/CNP

BP’s shares rose today after Bloomberg reported that Shell is working to evaluate a potential takeover of its British rival. Shell is said to have discussed the feasibility and merits of a takeover with its advisers in recent weeks, although it’s waiting for BP’s stock to fall further. BP became vulnerable to being taken over after its shares lost almost a third of their value as a turnaround plan fell flat. 

What You’ll Need to Know Tomorrow

For Your Commute

Warren Buffett picked the final minute of his 60th shareholder meeting to drop a long-awaited announcement that he’s stepping down from running Berkshire Hathaway. Now the baton is being passed to his crown prince, Greg Abel, along with a big question: What will he do with Berkshire’s almost $350 billion cash pile?

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