EU Commission Proposes Complete Ban on Russian Gas Imports

The European Commission has set a goal to completely eliminate imports of natural gas from Russia by the end of 2027. This move comes in response to the ongoing conflict in Ukraine, which has prompted the EU to impose extensive import bans on other Russian energy sources such as coal and oil. Currently, however, gas imports from Russia continue through liquefied natural gas (LNG) and the Turkstream pipeline.

In 2024, Russian gas accounted for approximately 19% of all gas imports into the EU, with a total value of EUR15.6 billion, according to data from the EU Commission. In contrast, the United States supplied gas worth EUR19.1 billion during the same period.

The Commission's plan involves a phased approach. Initially, it will prohibit the signing of new contracts for Russian gas and the purchase of gas via existing contracts on the spot market--a market for short-term gas deliveries. This restriction is expected to be implemented by the end of the current year.

Furthermore, the Commission aims to ban imports of Russian gas under existing long-term contracts, which will be gradually phased out. About two-thirds of the gas imports from Russia, whether via LNG or pipeline, are based on these long-term agreements.

Regarding consumer impact, the Commission has assured that measures will be taken to minimize price fluctuations and prevent supply shortages. EU Energy Commissioner Dan Jørgensen stated that the objective is to ensure energy security for all member states while keeping prices as low as possible.

However, the legal framework for implementing this ban remains unclear. The Commission may explore options under EU trade law, but a comprehensive import ban through sanctions is seen as unlikely due to the need for unanimous consent from EU member states. Notably, Hungary has resisted such measures, along with Slovakia, which declined to join a recent declaration concerning energy supply security.

If the proposed import restrictions are enacted, German energy company Sefe, formerly known as Gazprom Germania, may face significant implications. Sefe, which continues to import LNG from Russia under a long-term contract, has indicated that there is no legal basis for terminating or suspending this agreement. Even if Sefe ceases to take delivery of gas, it would still be obliged to pay for the agreed quantities, potentially allowing the Russian supplier to resell the gas and thus support the Russian economy.

This comprehensive approach to ending reliance on Russian gas highlights the EU's commitment to energy security and diversification of energy sources, aiming to foster a more resilient and independent energy sector across Europe.