Brussels (Brussels Morning Newspaper) – The European Union plans to propose a ban on Russian gas imports by the end of 2027 as it seeks to cut ties with its former largest energy supplier, Bloomberg reported.
Last year, imports from Russia accounted for about 19% of the EU’s total gas purchases, a significant drop from over 40% prior to the war. Similar to pipeline gas, most Russian LNG is purchased through long-term contracts with European buyers that include strict take-or-pay clauses, making it difficult to exit these agreements.
Why does the EU plan to ban Russian gas?
To advance a strategy aimed at reducing this dependency, the EU intends to propose a complete ban on all gas imports from Russia under new agreements and current spot contracts by June. These measures, which include spot contracts representing roughly one-third of imports, will be implemented no later than the end of 2025.
The European Commission will unveil plans in Strasbourg on Tuesday to propose a ban on Russian gas imports next month, encompassing both pipeline and LNG under these long-term contracts. This ban is set to be implemented by the end of 2027.
According to sources familiar with the issue, that timeline depends on the bloc’s capacity to obtain alternative LNG supplies from the US, Qatar, Canada, and Africa. Bloomberg reported last week that purchases from the US are under discussion as part of trade negotiations with the Trump administration.
The strategy to reduce national gas will minimally impact prices and energy security, considering the significant quantities of LNG expected to enter the market globally in the coming years, according to the sources. The plans may be altered prior to the announcement on Tuesday, the sources added.
Is unanimous approval needed for the EU gas ban?
Based on reports, even with attempts to reduce purchases after Moscow invaded Ukraine, eliminating cheap Russian gas imports remains challenging as the 27-nation bloc works to decrease energy prices.
Europe’s main concern is the rise in Russian liquefied natural gas supplies, which hit a record high after Gazprom PJSC sharply reduced pipeline shipments.
Legal experts stated that banning Russian gas imports is the most efficient way to eliminate reliance on Russian gas. This would necessitate unanimous consent from all 27 EU nations; however, Slovakia and Hungary aim to preserve their strong political and business connections with Russia, which has pledged to obstruct energy sanctions.
Following the start of the war in Ukraine, Gazprom and European companies have initiated legal actions and counterclaims regarding violated gas contracts and unpaid dues. According to court documents, calculations by relevant sources suggest that these disputes amount to approximately 18.5 billion euros.
