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(Bloomberg) — The European Union is set to propose measures to ban Russian gas imports by the end of 2027, as the bloc pushes to sever ties with the country that was once its biggest energy supplier.
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Despite efforts to cut purchases following Moscow’s invasion of Ukraine, cheap Russian gas imports are proving hard to eliminate at a time when the 27-nation bloc is struggling to lower energy prices. The biggest headache for Europe is a jump in Russian liquefied natural gas supplies, which surged to a record after Gazprom PJSC significantly curbed pipeline shipments.
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Imports from Russia shrank to around 19% of the EU’s total gas purchases last year from more than 40% before the war. To move ahead with a plan to curb that dependency, the EU plans to propose in June banning all gas imports under new deals with Russia and existing spot contracts. Those measures — covering spot contracts that account for about a third of imports — will take effect by the end of 2025 at the latest.
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Like pipeline gas, the majority of Russian LNG is bought under long-term contracts with European buyers with iron-clad take-or-pay clauses — and remain tricky to wriggle out of. In plans to be unveiled in Strasbourg on Tuesday, the commission is set to announce a proposal next month to ban imports of Russian gas, both flowing via pipelines and in the form of LNG under those long-term agreements. The prohibition would take effect by the end of 2027.
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That timeline rests on the bloc’s ability to source alternative LNG supplies from the US, Qatar, Canada and Africa, according to people familiar with the matter. Purchases from the US are being discussed as part of trade talks with the Trump administration, Bloomberg reported last week.
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The plan to phase out national gas will have a limited effect on prices and energy security, given the large amounts of LNG globally that are set to come to the market over the coming years, the people said. The plans are subject to change before the announcement on Tuesday, the people said.
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