EU reaches agreement to prohibit the use of Russian gas by autumn 2027

On Wednesday, European Union legislators and member nations finalized an agreement to eliminate all imports of Russian gas by the autumn of 2027. This step is part of the blocs broader strategy to cut off major revenue streams fueling Moscows military efforts.

The agreement, reached after overnight negotiations, seeks to reduce the EUs reliance on Russian energya dependence that has persisted despite the war in Ukraine. The deal represents a middle ground between EU capitals and the European Parliament, which had advocated for an earlier timeline.

Europe is closing the chapter on Russian gas once and for all, stated EU Energy Commissioner Dan Jorgensen on X. We are choosing energy security and independence. No more coercion, no more market manipulation. Europe stands united with Ukraine.

Under the terms, long-term pipeline contracts will be banned starting September 30, 2027, as long as storage levels are sufficient, and by November 1, 2027, at the latest. Long-term contracts for liquefied natural gas (LNG) will be prohibited from January 1, 2027, aligning with calls from Commission President Ursula von der Leyen to strengthen sanctions on Russia. Short-term contracts will end sooner: April 25, 2026, for LNG and June 17, 2026, for pipeline gas.

The European Council emphasized that the goal is to end dependence on Russian energy following its use as a geopolitical weapon, which has disrupted the European energy market. The proposed timeline still requires formal approval from the European Parliament and member states.

Companies in the EU will be able to cite force majeure to legally terminate existing contracts if necessary, citing the new import ban.

Reducing Reliance on Russian Energy

The agreement also instructs the European Commission to develop a plan to end Russian oil imports to Hungary and Slovakia by the end of 2027. This is notable as Hungarian Prime Minister Viktor Orban, known for his close ties to Moscow, recently pledged to continue Russian hydrocarbon imports.

The EU previously began reducing Russian oil dependence in 2022, granting temporary exemptions to Hungary and Slovakia. Now, nearly four years after Russias invasion of Ukraine, the bloc is moving to cut off another vital revenue source for Moscow.

Russian gass share of EU imports has dropped from 45% in 2021 to 19% in 2024. While pipeline deliveries have declined sharply, the EU has increased its reliance on LNG, which is shipped by sea, unloaded at ports, and reintegrated into the network.

Despite the drop, Russia remains a significant LNG supplier, accounting for about 20% of EU imports in 2024, roughly 20 billion cubic meters out of 100 billion. Russian LNG imports are still projected to reach around 15 billion euros this year.

Author: Grace Ellison