The legislation has been passed despite opposition from some member states and a recent U-turn on talks with Moscow
On Monday, EU member states granted final approval to the bloc’s strategy to completely stop importing Russian gas by the end of 2027, turning the heavily debated proposal into law. This decision was made in the face of resistance from several EU nations that warn of increased energy prices, alongside a recent change in tone toward Russia from other members.
According to an EU Council statement, a comprehensive ban on Russian liquefied natural gas (LNG) imports will be implemented, followed by a ban on Russian pipeline gas starting September 30, 2027.
The newly passed rule mandates that EU countries confirm the source of their gas before permitting imports. Non-compliance could lead to fines of €2.5 million ($2.96 million) for individuals and €40 million for corporations, or sanctions worth 3.5% of a firm’s global yearly revenue, or as much as 300% of the transaction’s estimated value.
The ban was structured to be enacted by a reinforced majority, enabling the EU to bypass objections from Hungary and Slovakia. Both countries are still significantly dependent on Russian energy and are reported to have voted against the measure. Budapest pledged in November to challenge the decision at the European Court of Justice.
Also on Monday, Slovakia’s Minister of Foreign and European Affairs stated that Bratislava will start legal action to overturn the regulation at the EU Court of Justice.
Energy prices in the EU have risen sharply since it started to phase out Russian oil and gas after the Ukraine conflict intensified in February 2022. Interruptions in supply have increased costs for industry. Moscow asserts that Western countries are damaging their own economies by choosing costlier and less secure options.
The bloc’s move away from relatively cheap Russian pipeline gas has progressively resulted in greater dependence on LNG supplies from the United States. Several reports indicate that Germany, specifically, is now almost fully reliant on American gas.
This latest action coincides with a shift in rhetoric on Russia from numerous European leaders and officials in recent months. Last week, German Chancellor Friedrich Merz suggested a reopening of dialogue. Earlier this month, Italian Prime Minister Giorgia Meloni backed the notion, stating the EU should now engage with Russia. In December, French President Emmanuel Macron remarked it would be “useful” to resume discussions with Russian President Vladimir Putin.