On Tuesday, the European Commission is likely to announce a proposed ban on Russian natural gas imports and LNG (liquefied gas) into the EU until the year 2027.
According to a Reuters article, this measure uses legal mechanisms to stop EU member Hungary and Slovakia blocking the plan.
A summary by the internal Commission of the upcoming proposal stated that the ban on Russian LNG and pipeline gas imports would be enforced legally starting in January 2026.
Contracts with longer deadlines will be awarded.
Officially banning Russian energy products
The European Union plans to formalise their commitment to cut long-standing energy relations with Russia, formerly its main gas supplier.
The decision was made in response to the invasion of Ukraine by Russia in 2022. Future proposals will explain how this promise will be codified in law.
A one-year phase of transition would apply to Russian gas contracts finalised before June 17, 2025. This period will end on June 17,2026.
According to the summary, imports of Russian gas under long-term contracts with EU will cease by January 1, 2028.
Russian LNG contracts, held by TotalEnergies of Spain and Naturgy in Spain will continue until 2030.
A key proposal being considered is the gradual prohibition on EU LNG terminals offering their services to Russian customers.
It would effectively close a crucial route for Russian LNG entering the European Market, and force Russia to look for alternative destinations, which could be less profitable, for its gas.
Transparency on the Gas Market
A parallel initiative is also aimed at enhancing transparency on the European Gas Market.
The EU will require that companies importing Russian gas disclose all information about their contracts, both to the EU and to national regulators.
The unprecedented scrutiny will shed light on the pricing mechanism, supply agreement, and other contract details. This allows authorities to detect and correct any possible market distortions, or influence from Russian suppliers.
This move is intended to promote greater accountability, and provide a better understanding of Europe’s vulnerabilities in terms of energy security.
These measures, reported previously by Reuters indicate the EU’s strategic move towards diversifying energy sources and increasing its collective bargaining strength in the global energy market.
Dan Jorgensen, EU Energy Commissioner, stated on Monday that these measures are designed to be legal robust and allow companies to use “force majeure”, an unexpected event, as a reason to cancel their Russian gas contract.
Jorgensen told reporters:
The companies won’t have any legal issues since this is a restriction, or a ban. It is a case of force majeure as it would be if the sanction had been applied.
No veto
Hungary and Slovakia oppose and have vowed block any sanctions against Russian energy that require the unanimous approval of EU.
The argument is that if they stopped importing Russian gas pipelines, due to their close political relations with Russia, energy prices would rise.
According to EU officials, in order to overcome this barrier, the Commission will use a legal basis of the EU that could be approved by a majority vote of both the European Parliament and the member states.
Officials noted that, although most EU countries support the ban in principle, certain importers have voiced concerns about the possibility of companies facing financial penalties or arbitration for contract violations.
Europe imports approximately 19% its gas from Russia. This is a substantial decrease from pre-2022 figures of around 45%.
The TurkStream pipeline carries this gas, as well as LNG, to countries such Belgium, France and the Netherlands.
Marc Ferracci, French Industry Minister told journalists on Monday
This plan is supported in its entirety, and we are committed to finding the best solutions for maximum business security.
The post EU to enforce Russian LNG and gas import bans by 2027 will be updated as new information becomes available.
