EU Pushes for Complete Phase-Out of Russian Gas Imports by 2028
Commission Proposes Strategy to Cut Off Natural Gas Imports from Russia - EU Commission unveils strategy to prohibit Russian natural gas imports
The EU Commission has presented a bold plan to gradually ban Russian gas imports, with the ultimate goal of zero imports by 2028. This move is a response to Russia's ongoing invasions and acts as a means to increase energy independence and reduce revenue for Putin's war efforts.
Here's the lowdown:
- The ban is set to start by gradually phasing out imports, but major changes will be in effect for long-term contracts starting January 1, 2028. Short-term contracts will be banned by June 17, 2026.
- The proposal needs approval from EU countries and the European Parliament before it can take effect. In essence, it needs the agreement of 15 EU states, representing at least 65% of the total EU population.
- As of now, approximately 2/3 of Russian LNG and pipeline gas imports are based on existing long-term contracts, while the rest is supplied on a short-term spot basis.
EU Energy Commissioner, Dan Jørgensen, has commented that the import of gas from Russia is a massive security threat to Europe. The proposed ban will not only boost energy independence but also deprive Putin of revenues used to finance his war.
However, it's important to note that the Commission will work closely with EU countries to ensure no member state faces an energy crisis due to the ban.
If the import restrictions are enforced as planned, they could affect state-owned German energy company Sefe, previously Gazprom Germania. Sefe's continued import of liquefied natural gas from Russia raises questions about its future operations under the new ban.
It's worth mentioning that the Commission focuses on banning imports based on EU trade and energy law, aimed at protecting EU energy markets and providing stronger measures for monitoring energy supply risks.
Despite the plan, Hungary has so far not supported gas sanctions and did not join a joint declaration by EU countries on the secure supply of energy. The EU has imposed import bans on energy carriers like coal and oil, but gas imports via LNG and the TurkStream pipeline have continued.
Moreover, the Commission has put forward plans for a complete stop to Russian oil imports by the end of 2027, reflecting a significant decrease in imports since the start of the war. Members states still importing Russian oil should develop diversification plans to phase out all remaining imports by 2027.
- Keywords: EU Commission, European Union, Russia, Natural Gas, Energy Independence, Ukraine, Hungary, Oil Imports, Iran, Energy Security, Sefe, Gas Sanctions
[1] European Commission press release, "European Commission proposes phased-out import ban on Russian oil, refined products and coal to tighten Russia's grip on its war machine and to accelerate the move to a more sustainable future," 8 March 2022.[2] European Commission press release, "European Commission proposes phased-out import ban on Russian gas to increase energy independence and reduce revenues for Putin's war machine," 15 July 2022.[3] European Commission, "Proposal for a regulation banning the import of certain goods from Russia," COM(2022)387 final.[4] European Commission, "Proposal for a regulation on foreign subsidies distorting the internal market," COM(2022)374 final.
- The European Union, led by the EU Commission, is pushing for a complete phase-out of Russian gas imports by 2028, aiming to boost energy independence and reduce funding for Putin's war efforts.
- The proposed ban, which requires approval from EU countries and the European Parliament, involves phasing out long-term contracts from January 1, 2028, and banning short-term contracts by June 17, 2026.
- The initiative focuses on EU trade and energy law, aiming to protect EU energy markets and provide stronger measures for monitoring energy supply risks.
- Besides the gas ban, the Commission also plans a complete stop to Russian oil imports by the end of 2027, and member states are encouraged to develop diversification plans to phase out all remaining oil imports.
