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E.U. to unveil proposal to phase out Russian natural gas by 2027

The Block plans to phase out Russian natural gas imports to the EU by 2027, marking a significant step towards severing energy ties with Moscow

The European Commission is preparing to unveil a sweeping proposal next month to phase out all Russian natural gas imports to the European Union (E.U.) by the end of 2027.

This would mark one of the bloc’s most ambitious steps yet to sever energy ties with Moscow in the wake of Russia’s invasion of Ukraine. The European Commission intends to present legislation in June’25 that would ban new Russian gas import deals, including spot market purchases, by the end of 2025. Existing contracts for Russian pipeline and Liquefied Natural Gas (LNG) deliveries would be outlawed by the close of 2027.

The Draft Proposal read, “If implemented in alignment with global market developments and reliable suppliers, the phase-out of Russian gas imports is expected to have limited impact on European energy prices and security of supply.”

The legislative measures would require approval from the European Parliament and a reinforced majority of E.U. Member States, making political consensus crucial. The E.U. has imposed sanctions on Russian coal and seaborne oil shipments, but not on gas due to opposition from Slovakia and Hungary, which receive Russian pipeline supplies and say switching to other suppliers would hike energy prices. Sanctions require unanimous approval from all 27 E.U. countries.

While Russian gas once accounted for around 40% of Europe’s supply, that figure has fallen to roughly 19%, now primarily delivered via the TurkStream pipeline and LNG shipments. European buyers still have “take-or-pay” contracts with Gazprom, which require those who refuse gas deliveries to pay for much of the contracted volumes. The European Commission has been exploring legal avenues to help companies exit these contracts without incurring severe financial penalties. Legal experts have warned that invoking “force majeure” could be difficult and could expose companies to arbitration or compensation claims.

The shift away from Russian gas has accelerated since late 2021, with pipeline imports declining sharply and LNG imports rising. In 2023, uncontracted “spot” purchases made up roughly 31% of Russian LNG acquired by European buyers.

In tandem, the E.U. has sought to diversify its energy sources, increasing purchases from the United States (U.S.), Norway, Algeria, and Qatar. In 2024, Norway emerged as the largest supplier of natural gas to the E.U., providing 33.6%, followed by Russia at 18.8%, and the U.S. at 16.7%.

The European Commission has emphasised that any further restrictions on Russian energy must harm Moscow more than they hurt the E.U., particularly amid concerns about rising fuel costs. The roadmap’s publication, initially expected in March, was delayed due to geopolitical uncertainties, including ongoing diplomatic efforts led by the U.S. to broker a peace deal between Russia and Ukraine—an outcome that could alter the sanctions landscape.

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