EU Plans to End All Russian Gas Imports by 2027

The European Union, on May 6, unveiled plans to enact legislation to end all Russian gas imports by 2027.

The European Commission’s plan consists of two steps. First, it would end new and existing short-term spot contracts with Russian gas suppliers by the end of 2025. Second, it will ban all remaining imports by the end of 2027.

The legislation aims to end the bloc’s gas dependence on Russia. By June, the EU Commission will propose legal measures to phase out the EU’s imports of all Russian gas and liquefied natural gas.

The EU initially enacted a ban on Russian oil in late 2022 in response to Moscow’s invasion of Ukraine in February 2022. Since then, it has also sought to wean itself off Russian gas supplies. Although imports via pipeline have plunged sharply, several European countries still buy Russian liquefied natural gas (LNG). Therefore, the EU wants to completely shut off the tap with this new plan.

The European Union initially postponed unveiling the plan, which still requires permission from member states. The bloc is waiting to see whether talks between Russia and the United States would produce a deal to end the Russia-Ukraine war.

Read: Russia and China in Talks on Stalled Power of Siberia 2 Pipeline

EU-Russia Gas Relations

Russia has been the European Union’s largest gas supplier for decades.

In 2021, the European Union imported 155 billion cubic metres of gas from Russia. The volume accounts for roughly 45% of EU gas imports and close to 40% of its total gas consumption.

Russia exports its gas to the EU via pipelines such as Nord Stream, Yamal-Europe, and Brotherhood.

Post-invasion, Russia supplied 17%-19% of the EU’s gas demand via the TurkStream pipeline and LNG shipments, down from roughly 45% before 2021.

In 2024, the EU still imported 52 BCM of gas from Russia—32 BCM via pipeline and 20 BCM as LNG—representing 19% of total gas imports.

By late 2024, Russian gas supplies had dropped to about 19%. The EU has largely replaced Russian gas supplies with LNG from the US (17%), Qatar (4%), and Norwegian pipeline gas (34%). However, the EU now want a complete decoupling from Russia.

Although overall EU gas imports from Russia have fallen since the 2022 invasion of Ukraine, imports of Russian LNG and pipeline gas rose by 19% in 2024.

Key Components of the EU’s Plan to Halt Russian Gas Imports

The European Commission will propose legislation in June 2025 to phase out the EU’s imports of all Russian gas and liquefied natural gas by the end of 2027. The EU’s legal measures will:

• End of 2025: End the bloc’s new contracts with Russian gas suppliers (LNG and pipeline gas)
• 2026-2027: Phase out existing short-term spot contracts with Russia (pipeline gas and LNG).
• End of 2027: End all Russian gas imports into the European Union.

Therefore, the EU plans to diversify its gas imports by expanding imports from countries such as the United States (LNG), Qatar (LNG), Algeria (pipeline gas), and others.

To achieve energy independence from Russia, the bloc plans to spend €300 billion under the Repower Europe master plan. With about €72 billion from grants and €225 billion in loans, expenditure requirements include:

• €113 billion allocated for renewables and hydrogen infrastructure (€86 billion for renewables and €27 billion for hydrogen).
• €37 billion to increase biomethane production.
• €29 billion to improve the power grid.

Others include expanded gas storage facilities and upgrades of interconnectors to enable gas flow from the West to landlocked Eastern states like Slovakia and Hungary. Furthermore, the EU will construct additional LNG import terminals to receive LNG supplies from the US, Qatar, and other suppliers.

EU Ban to Benefit the United States

The European Commission will propose new legislation in June to phase out the EU’s imports of all Russian gas by the end of 2027.

The bloc vowed to terminate its energy relations with Russia after the Kremlin invaded Ukraine in February 2022.

The US is pushing Russia for a cease-fire and peace deal with Ukraine. If achieved, this could reopen the door for Russian oil and gas exports back to the EU. However, with a peace agreement, the EU may push ahead to limit its gas imports from Russia.

Phasing out Russian supplies would allow the European Union to purchase more LNG from the United States. The EU and President Trump have floated the idea of increasing US LNG imports to the EU to settle their trade disputes.

The United States is already the European Union’s largest LNG supplier, making up 45% of the market.

Therefore, the US government will laud the EU’s plan. The ban allows American LNG suppliers to deepen ties with the EU, reinforcing NATO’s strategic cohesion.

Europe – Main Customers of Russia’s LNG Exports 2024

Russia’s LNG exports in 2024 reached a record high of 33.6 million tons, a 4% increase from the 2023 volume of 32.9 million tons.

European countries remain the largest importers of Russia’s LNG, accounting for 52% of Russia’s total LNG exports, about 17.4 million tons.

In 2024, France (6.3 million tons), Spain (4.8 million tons), Belgium (4.4 million tons), and the Netherlands (1.3 million tons) were the largest buyers of Russian LNG in the EU. LNG imports from Russia enter Europe primarily through France, Belgium, and Spain.

Russia’s surging LNG exports in 2024 underscore complications in the EU’s effort to reduce its reliance on Russian fossil fuels.

Thus, Europe remains hooked on Russian gas and has been unable to find alternative energy sources.

Despite these efforts, Europe’s imports of Russian LNG, which is largely not subject to sanctions, have soared to record levels in 2024.

Member States’ Challenges and Mitigation Strategies

After months of hesitation and rising criticism over soaring LNG imports from Russia, the European Commission announced on May 6  its roadmap to eliminate Russian fossil fuels by 2027.

Member states will react differently to the Commission’s plan to end all energy imports from Russia by the end of 2027

The EU has imposed sanctions on Russian coal and most oil imports. However, it did not impose sanctions on gas due to opposition from Slovakia and Hungary. Both countries import 80% of their oil and gas needs from Russia.

Also, France would face a more serious impact since it operates five terminals for its delivery in Europe. According to the Institute for Energy Economics and Financial Analysis, France increased its Russian LNG imports by 81% between 2023 and 2024.

While Germany has halted direct pipeline gas imports from Russia, between 3% and 9.2% of its gas supply still originates from Russia. Germany bought 58 cargoes of Russian LNG from the French port of Dunkirk in 2024, six times more than in 2023.

Why the EU’s Push to End Russian Gas Will Be difficult

The EU Commission’s plan to eliminate all gas imports from Russia will encounter significant commercial, political, and operational challenges.

European energy giants like France’s TotalEnergies and Engie have long-term Russian gas contracts. Invoking this would be challenging without exposing them to penalties or arbitration. European buyers have “take-or-pay” contracts with Gazprom. Therefore, buyers who decline deliveries would pay for much of the contracted gas volumes.

The EU is the world’s biggest buyer of Russian LNG, ahead of China, Japan, and South Korea.

Amid high LNG demand, European buyers typically pay more than other global markets to divert LNG to their ports.

Once the block halts gas imports from Russia, European buyers will continue to pay premium prices for suppliers to divert cargoes to their ports. This will lead to intense criticism from Asia.