EU to Halt New Russian Gas Deals by Year-End, Phase Out Imports by 2027

The European Union is poised to announce a significant policy shift in its energy strategy, with plans to halt new natural gas transactions with Russia by the end of this year and to gradually phase out existing contracts by the end of 2027. This initiative, disclosed by three EU officials, is aimed at decreasing the bloc's reliance on Russian energy supplies amidst ongoing geopolitical tensions.

The EU Commission is anticipated to release a detailed roadmap outlining these measures. The roadmap will include a commitment to propose a ban on new natural gas agreements and spot contracts by the end of 2025. Additionally, it will propose legislation to prohibit the import of Russian natural gas and liquefied natural gas (LNG) under existing contracts by the end of 2027. These plans, however, are subject to change as they are part of confidential discussions.

The proposed ban on new natural gas deals is set to take effect by the end of this year, marking an immediate step in the EU's strategy to reduce its dependence on Russian energy sources. This move is part of a broader effort to transition away from Russian energy, which has been a contentious issue in recent years. The EU Commission will also work on phasing out long-term contracts for both pipeline gas and LNG from Russia, a process that will require a longer transition period extending until the end of 2027.

The EU's decision to phase out Russian natural gas imports is expected to have significant implications for global energy markets. This move will not only reshape Europe's energy landscape but also create new opportunities for alternative suppliers. The EU's reliance on Russian natural gas has been a point of contention, particularly in light of recent geopolitical developments. By taking these steps, the EU aims to enhance its energy security and reduce its vulnerability to external influences.

The EU's plan to prohibit Russian natural gas imports by 2027 is a bold move that underscores the bloc's commitment to energy independence. The gradual phase-out of existing contracts will allow for a smoother transition, minimizing disruptions to the energy supply. This strategy is part of a broader effort to diversify energy sources and reduce reliance on a single supplier, thereby strengthening the EU's energy security and resilience. The EU's decision is likely to have significant implications for global energy markets, as other regions and countries may follow suit in seeking to reduce their dependence on Russian energy supplies.