May 6, 2025
The EU plans to stop importing Russian gas by the end of 2027.
The European Union will unveil plans on Tuesday to prohibit new Russian gas agreements by the end of this year and to phase out existing contracts with Russia by the end of 2027, according to three EU officials speaking to Reuters.
Following Moscow's invasion of Ukraine in 2022, the bloc aimed to halt Russian fossil fuel imports by 2027. The EU Commission's strategy includes a commitment to propose a ban on new Russian gas import agreements and spot contracts by the end of 2025. It will also present a legal proposal to prohibit Russian gas and liquefied natural gas imports under current contracts by the end of 2027, as revealed by the officials, who requested anonymity due to the confidential nature of the plans, which may still be altered before publication.
These legal proposals will require approval from the European Parliament and a reinforced majority of EU member states. Although the EU has already imposed sanctions on Russian coal and seaborne oil, it has not yet sanctioned gas due to resistance from Slovakia and Hungary, who depend on Russian pipeline supplies and argue that changing suppliers would increase energy costs. Sanctions need unanimous consent from all 27 EU countries.
Currently, about 19% of Europe's gas is sourced from Russia via the TurkStream pipeline and LNG shipments, a decrease from the roughly 40% supplied before 2022. However, European buyers still have "take-or-pay" contracts with Gazprom, necessitating payment for contracted volumes even if they refuse gas deliveries.
The Commission has been exploring legal avenues for European companies to exit existing Russian gas contracts without incurring financial penalties, though EU officials did not clarify how this would be achieved. Legal experts have noted that invoking "force majeure" to terminate these contracts would be challenging, potentially leading to penalties or arbitration.
Uncontracted "spot" purchases constituted approximately 31% of the Russian LNG imported by Europe last year, according to Rystad Energy data. As it seeks to sever long-standing energy ties with Russia, the European Commission has indicated a readiness to increase purchases of U.S. LNG, a demand previously made by President Donald Trump to reduce Europe's trade surplus with the U.S. The Commission is also mindful of energy prices and has stated that any restrictions on Russian energy imports should inflict more damage on Moscow than on the EU, while considering the impact on fuel costs.
The U.S. is encouraging Russia to pursue a peace agreement with Ukraine, which, if successful, could lead to a resumption of Russian energy supplies and the relaxation of sanctions. The European Commission had intended to release its roadmap in March but postponed it partly due to uncertainty surrounding these developments.
Following Moscow's invasion of Ukraine in 2022, the bloc aimed to halt Russian fossil fuel imports by 2027. The EU Commission's strategy includes a commitment to propose a ban on new Russian gas import agreements and spot contracts by the end of 2025. It will also present a legal proposal to prohibit Russian gas and liquefied natural gas imports under current contracts by the end of 2027, as revealed by the officials, who requested anonymity due to the confidential nature of the plans, which may still be altered before publication.
These legal proposals will require approval from the European Parliament and a reinforced majority of EU member states. Although the EU has already imposed sanctions on Russian coal and seaborne oil, it has not yet sanctioned gas due to resistance from Slovakia and Hungary, who depend on Russian pipeline supplies and argue that changing suppliers would increase energy costs. Sanctions need unanimous consent from all 27 EU countries.
Currently, about 19% of Europe's gas is sourced from Russia via the TurkStream pipeline and LNG shipments, a decrease from the roughly 40% supplied before 2022. However, European buyers still have "take-or-pay" contracts with Gazprom, necessitating payment for contracted volumes even if they refuse gas deliveries.
The Commission has been exploring legal avenues for European companies to exit existing Russian gas contracts without incurring financial penalties, though EU officials did not clarify how this would be achieved. Legal experts have noted that invoking "force majeure" to terminate these contracts would be challenging, potentially leading to penalties or arbitration.
Uncontracted "spot" purchases constituted approximately 31% of the Russian LNG imported by Europe last year, according to Rystad Energy data. As it seeks to sever long-standing energy ties with Russia, the European Commission has indicated a readiness to increase purchases of U.S. LNG, a demand previously made by President Donald Trump to reduce Europe's trade surplus with the U.S. The Commission is also mindful of energy prices and has stated that any restrictions on Russian energy imports should inflict more damage on Moscow than on the EU, while considering the impact on fuel costs.
The U.S. is encouraging Russia to pursue a peace agreement with Ukraine, which, if successful, could lead to a resumption of Russian energy supplies and the relaxation of sanctions. The European Commission had intended to release its roadmap in March but postponed it partly due to uncertainty surrounding these developments.