European Commission proposes historic ban on Russian gas imports by 2027

Reuters features in a new article that the European Commission unveiled a groundbreaking proposal to phase out the EU’s imports of Russian natural gas and liquefied natural gas (LNG) by the end of 2027, signaling a decisive break from decades of energy dependence on Moscow. 

The phased ban would begin on January 1, 2026, prohibiting imports under any new Russian gas and LNG contracts signed before the end of 2025. From June 17, 2026, imports under short-term contracts signed before June 17, 2025, would also be banned. The final stage, starting January 1, 2028, would see the end of imports under existing long-term contracts, affecting companies like TotalEnergies and Naturgy, whose agreements extend into the 2030s. EU LNG terminals would be barred from servicing Russian customers under contracts signed after June 17, 2027, beginning January 1, 2026, with all services under long-term contracts to end by January 1, 2028.

About two-thirds of Russia’s gas exports to Europe are through long-term contracts, with the rest coming from short-term and spot market deals.

The proposal relies on EU trade and energy laws, requiring approval by a reinforced majority of at least 15 of 27 EU countries representing 65 per cent of the population, along with a majority in the European Parliament. This approach avoids a veto from Slovakia and Hungary, which oppose the ban. While sanctions would provide a stronger legal basis, they require unanimous consent from all member states.

Spain, Belgium, the Netherlands, and France support the ban but stress the need for a legally robust framework to protect companies from penalties or arbitration.

Legal experts warn that without sanctions, companies remain exposed to “take-or-pay” contracts with Gazprom, obliging payment even if gas is not taken. The Commission plans to allow companies to invoke “force majeure” clauses to break contracts where applicable and will require transparency on contract terms to customs authorities.

Russia supplied 19 per cent of EU gas imports last year—down from 45 per cent before the Ukraine invasion in 2022—and its share is expected to fall to 13 per cent this year. The Commission assured the EU’s energy supply will remain secure, citing unused LNG capacity and alternative pipelines. The EU can import up to 250 billion cubic meters of LNG annually but used less than half last year. To replace Russian gas, the EU is ready to boost LNG imports from the US, despite the higher cost for countries like Hungary and Slovakia, where Russian gas was priced 13-15 per cent cheaper.

Unlike gas, the EU has already sanctioned most Russian oil imports, except for Slovakia and Hungary, which still rely heavily on Russian oil. The Commission has proposed that these countries submit national plans to phase out Russian oil by 2027. Currently, only 3 per cent of the EU’s oil imports come from Russia. Brussels also plans to introduce measures to reduce reliance on Russian nuclear fuel, though no timeline has been set.

By Naila Huseynova