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EU set to phase-out Russian gas by 2027

by Roman Cheplyk
Tuesday, June 17, 2025
2 MIN
EU set to phase-out Russian gas by 2027

Draft regulation foresees a stop to new supply contracts from 2026 and a full ban on long-term deals from 2028, with parallel disclosure and service restrictions for LNG terminals

Headline decisions

Measure Effective date Scope
No new import contracts 1 Jan 2026 Pipeline gas & LNG
Termination of existing short-term deals 17 Jun 2026 Contracts signed before 17 Jun 2025
End to long-term contracts 1 Jan 2028 All remaining Russian gas & LNG volumes
Service embargo on Russian LNG terminals inside the EU Phased-in Maintenance, insurance & shipping services
Mandatory contract disclosure Upon adoption Importers must file terms with EU & national regulators

Legal architecture

  • The draft will be tabled under qualified-majority voting, side-stepping a potential veto from single member states.

  • Clauses invoke force-majeure protection for buyers exiting contracts, mirroring existing EU sanctions language.

  • Nuclear-fuel measures will follow in a separate legislative package.


Market context

  • Russian share of EU gas imports has fallen from 45 % (pre-2022) to 19 % (2024).

  • The measure dovetails with REPowerEU objectives: accelerated LNG diversification, renewables roll-out and demand-side efficiency.


Political signals

  • Energy Commissioner Dan Jørgensen: ban framed as a legal prohibition rather than contractual renegotiation.

  • France publicly backs the plan; Hungary and Slovakia’s concerns are addressed via the force-majeure mechanism.

  • Voting is expected later this year, requiring support from 15+ member states and the European Parliament.


Strategic implications

Stakeholder Impact
European utilities & traders Must unwind Russian supply lines; contract transparency requirements tighten compliance workload.
LNG portfolio owners Incentivised to secure non-Russian cargoes; service bans could redirect terminal capacity.
Infrastructure investors Additional clarity for renewable and interconnector projects under REPowerEU funding.
Ukraine Strengthened EU commitment to energy decoupling from Russia underpins Kyiv’s integration narrative.

Next steps: Formal draft publication, stakeholder consultation, Council & Parliament votes. Entry into force follows 20 days after publication in the EU Official Journal.

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