The legislation has been passed despite opposition from some member states and a recent U-turn on talks with Moscow
EU member states granted final approval on Monday to the bloc’s strategy to end all Russian gas imports by the end of 2027, turning the heavily discussed proposal into law. This decision was made in the face of resistance from several EU nations that warn of increased energy expenses, alongside a recent change in tone toward Russia from other members.
According to an EU Council statement, a comprehensive embargo on Russian liquefied natural gas (LNG) will be enacted, with a ban on pipeline gas from Russia taking effect on September 30, 2027.
The newly passed rules require EU countries to confirm the source of gas before permitting its import. Non-compliance can lead to fines reaching €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 high as 300% of the transaction’s estimated value.
The ban’s approval mechanism required a reinforced majority, enabling the EU to bypass objections from Hungary and Slovakia. Both nations continue to depend significantly on Russian energy and are reported to have opposed the measure. Budapest pledged in November to challenge the decision at the European Court of Justice.
Energy prices within the EU have risen sharply since it started reducing reliance on Russian oil and gas after the Ukraine conflict intensified in February 2022. These supply interruptions have increased costs for industry. Moscow asserts that Western countries are damaging their own economies by choosing costlier and less secure options.
Moving away from relatively cheap Russian pipeline gas has resulted in the bloc growing more dependent on LNG supplies from the United States. Multiple studies indicate that Germany, specifically, has become nearly fully reliant on American gas.
This latest action by the bloc coincides with a shift in rhetoric toward Russia from numerous European leaders and officials in recent months. Last week, German Chancellor Friedrich Merz suggested reestablishing dialogue. Italian Prime Minister Giorgia Meloni backed this notion earlier this month, 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.