The EU Agrees to Permanently Halt Russian Gas Imports and Phase Out Russian Oil

tendata blogTrade Trends News

ten data blog2025-12-10

Based on a provisional political agreement reached by the European Parliament and the Council of the EU, the European Union will effectively and permanently cease imports of Russian gas and phase out Russian oil. This historic decision will end the EU's reliance on an unreliable supplier that has repeatedly disrupted European energy markets, jeopardized energy security through energy blackmail, and damaged the European economy. As outlined in the “REPowerEU Roadmap,” the complete phase-out of Russian fossil fuels is a crucial step towards securing Europe's energy independence, competitiveness, resilience, and market stability.


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European Commission President Ursula von der Leyen said:

"Today, we are entering an era of complete European energy independence from Russia. The REPowerEU project is a success. It shielded us from the worst energy crisis in decades and helped us eliminate our dependence on Russian fossil fuels at a record pace. Today, we are putting a permanent stop to these imports. By cutting off Putin's energy reserves, we stand with Ukraine and look ahead to new energy partnerships and industrial opportunities."


Permanent Ban on Russian Gas Imports

Today's agreement ensures a gradual but permanent cessation of natural gas imports from Russia, with LNG imports to be phased out by December 31, 2026, and piped gas imports by September 30, 2027. In exceptional circumstances, if a Member State's gas storage falls below a regulated filling level, the deadline can be extended until October 31, 2027. 

Specifically:

· For short-term supply contracts concluded before June 17, 2025, the ban on Russian gas imports will apply from April 25, 2026, for LNG and from June 17, 2026, for piped gas.

· For long-term LNG import contracts concluded before June 17, 2025, the ban will take effect from January 1, 2027, consistent with the 19th sanctions package.

· Piped gas imports under long-term contracts will only be allowed to continue until September 30, 2027. The piped import ban will take effect from November 1, 2027, if a Member State faces difficulties meeting the required storage level.

· Modifications to existing contracts are only permitted for strictly defined operational purposes and must not lead to an increase in volume or price.


Consequently, the EU will completely stop importing gas from Russia by November 2027 at the latest.


Under this political agreement, robust anti-circumvention measures are incorporated, in addition to existing customs control and surveillance frameworks. Provisions aimed at increasing transparency, strengthening regulatory oversight, and traceability of Russian gas within the EU market will contribute to the effective implementation of the import ban.


For Russian gas imported during the transition period, prior authorization and the submission of highly detailed information will be required to ensure imports are limited to the scope based on historical (existing) contracts. For non-Russian gas imports, importers need to provide the country of production; exempted countries are those that supplied less than 5 billion cubic meters of gas to the EU in 2024 and are subject to sanctions or lack gas import infrastructure.


Gradual and Coordinated Phase-Out of Russian Fossil Fuels

Under the agreement, Member States must submit National Diversification Plans outlining their measures for diversifying gas and oil supplies by March 1, 2026. They must also notify the Commission within one month of the regulation's entry into force if they have gas supply contracts with Russia or have implemented national legal bans.


The Commission will assess the plans and, where appropriate, issue recommendations within three months of their receipt. Furthermore, the Commission is ready to support Member States throughout the process.


To prevent the circumvention of the gas ban, a monitoring mechanism is established, requiring authorities to cooperate and exchange information on gas imports. The European Commission will support Member States and work closely with the Agency for the Cooperation of Energy Regulators (ACER), the European Public Prosecutor's Office (EPPO), and the European Anti-Fraud Office (OLAF) to monitor the progress and impact of the Russian gas and oil import phase-out.


The measures set out in the regulation will be deployed with careful planning and coordination with Member States to minimize potential impacts on prices, stabilize the market through secure and predictable alternative supplies, and provide legal certainty.


The Commission remains committed to ensuring the phase-out of all remaining Russian oil imports by the end of 2027, as laid down in the Versailles Declaration. A legislative proposal prohibiting oil imports from Russia will be presented early next year.


Next Steps

Following this political agreement, the text will need to be translated into all official EU languages and then formally approved by the European Parliament and the Council. The Council must adopt the text by qualified majority voting. Once formally adopted, the text will be published in the EU's Official Journal.


Background

EU leaders agreed to phase out Russian energy in the Versailles Declaration in March 2022. In response to the war in Ukraine and the weaponization of energy supply by Russia, the European Commission proposed the REPowerEU Plan in May 2022. Since the war began, the EU's dependence on Russian gas has dropped from 45% of total imports to 13% in the first half of 2025. Nevertheless, 35 billion cubic meters of Russian gas still entered the EU's energy system last year, worth about €10 billion at current prices. All Russian coal imports are now prohibited by sanctions, and oil imports have dropped from 27% at the beginning of 2022 to the current 2%.


The European Commission adopted the REPowerEU Roadmap on May 6, 2025, paving the way for the EU to become fully independent of Russian energy. Subsequently, the Commission submitted this legislative proposal on June 17, 2025, aiming for a complete ban on Russian gas imports and ensuring the phase-out of Russian oil.


In October, the Council adopted the 19th sanctions package against Russia, designed to reduce Russia's energy export revenues, banning the import of Russian Liquefied Natural Gas (LNG) through long-term contracts from January 1, 2027, and banning short-term LNG imports six months after the sanctions enter into force.

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