EU agrees on final date to phase out Russian gas

The Council of the European Union and the European Parliament have reached a provisional political agreement on a regulation setting out the rules for the gradual phase-out of imports of Russian natural gas. If approved, the full ban will come into force by the end of 2027, according to the Council of the European Union, Report informs via Ukrainska Pravda.

The document is a key element of the REPowerEU plan aimed at strengthening Europe's energy independence. The new rules establish a legally binding complete ban on the import of Russian gas – both liquefied natural gas (LNG) and pipeline gas.

The final ban on long-term contracts for pipeline gas will take effect no later than November 1, 2027. For long-term LNG agreements, the restrictions will apply from January 1, 2027.

For short-term contracts concluded before June 2025, a transitional period is foreseen: the ban on Russian LNG will apply from April 25, 2026, and the ban on pipeline gas from June 17, 2026.

To ensure compliance with the ban, the EU will introduce a system of prior authorization for imports. For Russian gas, information will need to be submitted at least one month before delivery.

Any amendments to existing contracts will be permitted only for technical reasons and may not increase the volume of supply.

The new rules provide for fines for companies and individuals who violate them.

The regulation also requires member states to submit national plans for diversifying their supplies. The same requirement will apply to countries that still import Russian oil. The European Commission intends to propose a legislative initiative to end imports of Russian oil by the end of 2027 at the latest.

"This is a big win for us and for all of Europe. We have to put an end to EU's dependence on Russian gas, and banning it in the EU permanently is a major step in the right direction," said Lars Aagaard, Danish Minister for Climate, Energy and Utilities.

The provisional agreement must now be formally approved by the Council of the EU and the European Parliament, after which the document will be finally adopted.

The EU Council approved the RePowerEU mechanism, which envisages a complete phase-out of Russian fossil fuels by the European Union, by a large majority on Monday, October 20. Hungary and Slovakia voted against.