European Union Introduces LNG Ban on Russia, Effective From 2027
The European Union (EU) is considering a new sanctions package against Russia, aimed at depriving Moscow of the means to wage war and ending the conflict in Ukraine. The proposal includes measures against the Russian credit card system (Mir) and the quick payment system SBP, as well as trade restrictions against further companies from countries like China and India.
The EU Commission, led by High Representative for Foreign Affairs Kaja Kallas, has advocated for a robust new sanctions package in response to the preliminary failure of the US peace initiative for Ukraine and the heavy Russian air strikes on Ukraine. The negotiation process for the adoption of these sanctions will take place over the next few days among representatives of EU countries.
Some countries, such as Hungary, are critically opposed to any new sanctions against Russia. However, Germany, France, Nordic, and Eastern European countries have advocated for a strong stance against Moscow. Other EU member states have agreed on tightening sanctions with the 19th package proposed by the EU Commission, targeting Russian fossil fuel revenues and financial sectors.
The current concept of the sanctions proposes a gradual phasing out and complete end of Russian gas imports by the end of 2027, and a full import ban on oil by the same date. Only the energy import ban could potentially be adopted by a majority decision, not requiring unanimous agreement. Plans for new export bans on goods and services that could be used by the Russian defense industry or strengthen Russian industrial capacities are still in place.
More than half of Russia's news to the EU comes as liquefied natural news (LNG). In the first half of 2025, the EU imported LNG from Russia worth almost 4.5 billion euros. Last year, Moscow's news deliveries still accounted for about one fifth of all EU news imports. The EU Commission wants to bring forward the date for a full import ban on LNG from Russia to the EU, with the ban now set to come into effect as early as the beginning of 2027.
Stricter action against the use of cryptocurrencies is also planned. More than 100 ships that are part of the so-called Russian shadow fleet for circumventing news sanctions will be listed, with no docking or insurance allowed in EU states' ports. Denying further banks from Russia and allied countries access to EU capital markets is also part of the proposed sanctions.
The new sanctions package is a response to the ongoing conflict in Ukraine, with Russia financing the war through revenues from the sale of fossil fuels. The EU wants peace for Ukraine, but Russia's escalation of aggression has led to a violation of EU borders. The proposed sanctions aim to send a clear message to Moscow that its actions are unacceptable and have consequences.
The negotiation process for the adoption of the sanctions will be challenging, given that the sanctions must be decided unanimously by all 27 EU countries. However, the EU is determined to take action to protect its values and interests, and to support Ukraine in its struggle for peace and sovereignty.
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