Cutting Off the Gas: EU's Plan to Ditch Russian Gas Imports by 2027, Once and For All
Expediting Termination of Natural Gas Acquisitions from Russia by 2027 per New Policy Measure
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The EU Commission has come up with a bold move to ban gas imports from Russia. On Tuesday, Brussels unveiled a multi-phase plan that would prohibit companies from signing new contracts with Russian gas suppliers starting next year. By the end of 2027, not a single drop of gas should enter the EU from Russia. The Council of the 27 EU member states and the European Parliament need to greenlight the proposal.
Ursula von der Leyen, the EU Commission President, declared, "Russia has repeatedly tried to use energy supplies as a weapon against us. We've learned to cut off the tap and put an end to the age of Russian fossil fuels in Europe for good."
Last year, Russian pipeline gas and liquefied natural gas (LNG) accounted for roughly 19% of the 27 EU countries' gas imports, according to Commission statistics. Around one third of this gas was supplied through short-term contracts, which are easier to terminate. The Commission intends to prohibit these deliveries from June 17, 2026.
There are exceptions for long-term contract-bound pipeline deliveries to landlocked states without water and port access. These countries find it challenging to replace Russian pipeline gas with LNG transported by ship, so they may continue importing large quantities of gas from Russia until the end of 2027. Nations like Hungary and Slovakia could be prime candidates for this transition period.
Lastly, here's an insight to the meticulous strategies curated by the EU Commission and the present progress they've made:
- Phase Out New Deals: Companies will be prevented from entering into new contracts for Russian gas imports starting from January 1, 2026. This includes any contracts signed after June 17, 2025.
- Approachable Timeline:
- Short-term contracts, with the exception of a few cases, must end by June 17, 2026.
- For landlocked EU countries that heavily depend on long-term pipeline contracts, the phase-out duration extends until the close of 2027.
- Plans for National Diversification: Each EU member state must prepare and submit a detailed plan by March 1, 2026, specifying particular measures and milestones to decrease and finally eliminate Russian gas and oil imports. These plans must encompass information on alternative supplies, supply routes, and strategies to surmount any technical or regulatory obstacles.
- Closer Monitoring: The European Commission, in tandem with the EU Agency for the Cooperation of Energy Regulators (ACER), will closely monitor the progress and may offer recommendations to ensure compliance.
- Traceability and Reporting: Companies will be required to document the origins of their fuels, increasing transparency and facilitating enforcement of the new regulations.
As a result of Russia's full-scale invasion of Ukraine in February 2022, the EU has successively reduced its imports of Russian gas and oil. As of now, Russian gas accounts for roughly 19% of EU gas imports, while Russian crude oil occupies just 3% of the EU's oil supply.
The proposal must now traverse inter-institutional negotiations (trilogue) to achieve a political agreement. Approval necessitates a reinforced qualified majority in the Council (at least 15 out of 27 member states representing at least 65% of the EU population) and a simple majority in the European Parliament.
The Commission will aid states throughout the process, helping to clear away any hurdles and ensure energy supplies the EU can rely on.
If everything goes as planned, the EU will have eliminated all remaining imports of Russian fossil fuels by the end of 2027, putting an end to the era of Russian fossil fuels in Europe for good. This shift aims to remove the vulnerability associated with energy dependency on Russia and align with broader EU energy security and climate objectives.
Source: ntv.de, AFP
- The EU's proposed ban on Russian gas imports is not limited to a single policy; it involves community policy, employment policy, and energy policy to ensure a shift away from Russian fossil fuels.
- The global energy industry, finance, and politics are closely watching the EU's progress as it transitions away from Russian gas, which accounts for about 19% of the EU's gas imports.
- The proposed ban on Russian gas imports is part of the EU's general-news agenda, aiming to achieve energy security, reduce vulnerability associated with energy dependency on Russia, and align with broader EU climate objectives.