In a landmark move to sever its energy dependence on Russia, the European Commission has proposed a legally binding ban on Russian gas and liquefied natural gas (LNG) imports by 2027. The measure is part of the EU’s broader strategy to bolster energy security and respond to geopolitical tensions stemming from Russia’s invasion of Ukraine in 2022.
Phased Implementation of Russian Gas Ban
The proposed ban will be enforced in a phased manner:
- January 1, 2026: A ban on all new contracts for Russian gas and LNG signed after 2025.
- June 17, 2026: Short-term contracts (less than one year) signed before June 17, 2025, will be prohibited.
- January 1, 2028: All existing long-term contracts will be banned, marking the EU’s full exit from Russian gas dependency.
This timeline gives EU member states, particularly Hungary and Slovakia, time to adjust, even as they remain vocal opponents of the plan.
Legal Strategy to Bypass Veto Threats
To prevent potential vetoes from Hungary and Slovakia, the Commission has designed the proposal to pass via a reinforced qualified majority under EU trade and energy laws, avoiding the need for unanimous approval. Additionally, companies affected by the ban will be allowed to invoke “force majeure” clauses to exit existing agreements without penalty.
Impact on Member States and Energy Prices
Hungary and Slovakia, which still rely heavily on Russian gas, have expressed concern over potential energy price hikes. However, the proposal provides them with a transition period until 2028, allowing for a gradual phase-out of both short- and long-term contracts.
Diversifying Energy Sources: LNG and U.S. Imports
To replace Russian supplies, the EU is expanding liquefied natural gas (LNG) imports, particularly from the United States. The bloc has the capacity to import 250 billion cubic meters (bcm) of LNG annually, though less than half was utilized last year. Support for the ban has come from several member states, including Spain, Belgium, the Netherlands, and France, which are already transitioning to non-Russian energy sources.
Legal and Financial Hurdles
The transition away from Russian gas presents several legal and financial challenges:
- European energy firms may face penalties or international arbitration if they terminate long-term contracts early.
- Companies will be required to disclose contract details to customs authorities to ensure compliance.
- Concerns remain about higher costs of alternative gas sources, as Russian gas was often sold at discounted rates.
Broader EU Energy Policy Shift
Beyond gas, the EU has already imposed sanctions on most Russian oil imports, though Hungary and Slovakia continue to receive exemptions. The Commission has urged these countries to develop national plans to cut oil dependence by 2027. Future legislation may also target the EU’s import of Russian nuclear fuel, further aligning energy policy with geopolitical strategy.