EUs Bold Strategy: Total Elimination of Russian Gas Imports by 2027

On Tuesday, Brussels introduced a long-awaited initiative aimed at eliminating its remaining gas imports from Russia by the conclusion of 2027, a move that poses considerable challenges given Europe’s ongoing reliance on Russian energy resources.

«Today, the European Union delivers a very explicit message to Russia: no more will we allow Russia to use energy as a weapon against us,» stated EU energy commissioner Dan Jorgensen while outlining the new measures.

The European Commission’s two-phase strategy will terminate new agreements and existing short-term spot contracts with Russian gas suppliers by the end of 2025, and all remaining imports will be prohibited by the end of 2027.

«We will no longer allow our member states to be subjected to blackmail. We will no longer indirectly contribute to funding the Kremlin’s military actions,» Jorgensen declared during a press briefing.

In late 2022, the EU imposed a ban on Russian oil in response to Moscow’s full-scale invasion of Ukraine, and since then, efforts have been made to reduce the dependence on Russian gas.

While pipeline imports have significantly dropped, several European nations have increased their acquisitions of Russian liquefied natural gas (LNG) transported by maritime means, prompting the bloc to aim for a complete cessation of these imports.

As of now, Russian gas still accounts for 17% of the EU’s supplies, according to data from the bloc, with the Institute for Energy Economics and Financial Analysis (IEEFA) estimating it could be as high as 19%.

To eliminate reliance on Russian energy, “the fundamental principle is diversification,” said Paula Pinho, chief spokesperson for the European Commission, last week.

Transitioning away from Russian supplies could enable Europe to purchase more LNG from the United States, a solution tentatively proposed by both Brussels and former U.S. President Donald Trump to address the trade tensions that arose during his administration.

EU trade chief Maros Sefcovic indicated to the Financial Times that the trade dispute with Washington could be resolved «very quickly» through purchases of LNG and soybeans to help reduce the bloc’s trade surplus with the U.S.

The U.S. is already the largest supplier of LNG to the EU, comprising 45.3% of the market share.

European officials recognize that ending reliance on Russian energy is more complex in practice, as certain member states are more reliant on Moscow’s LNG than others; countries like Hungary maintain relatively cordial relations with the Kremlin.

For instance, France would experience a greater impact from any reduction in Russian LNG as it operates five terminals for LNG delivery across Europe. Between 2023 and 2024, France raised its Russian LNG imports by 81%, generating €2.68 billion ($3 billion) in revenue for Russia, according to IEEFA.

The Commission’s proposal, which still requires approval from member states, was postponed as Brussels awaited the outcome of negotiations between Russia and the United States for a potential resolution to the Ukraine conflict.

Since the invasion in 2022, the EU has emphasized its endeavors to decrease its dependence on Russian fossil fuels.

Over a few years, «we diminished our gas imports from Russia from 45% to 18%. Similarly, our oil imports fell from one in five barrels to one in fifty, a tenfold decrease,» noted EU chief Ursula von der Leyen last month.

However, she acknowledged, «we all understand that there is still a considerable amount of work ahead.»