EU formally adopts regulation phasing out imports of Russian gas

The 27 European Union member states formally adopted on January 26 the regulation on phasing out Russian imports of both pipeline gas and liquified natural gas (LNG) into the EU, a statement by the Council of the EU said.

The new rules also include measures on effective monitoring and diversification of energy supply.

The regulation is a key milestone in delivering the REPowerEU objective of ending the EU’s reliance on Russian energy, the Council of the EU said.

According to the regulation, importing Russian pipeline gas and LNG into the EU will be prohibited.

The ban will start to apply six weeks after the regulation enters into force.

Existing contracts will have a transition period. This stepwise approach will limit the impact on prices and markets, the statement said.

A full ban will take effect for LNG imports from the beginning of 2027 and for pipeline gas imports from autumn 2027.

Before authorising entry of gas imports into the Union, EU countries will verify the country where gas was produced.

Non-compliance with the new rules may result in maximum penalties of at least 2.5 million euro for individuals and at least 40 million euro for companies, at least 3.5 per cent of the company’s total worldwide annual turnover, or 300 per cent of the estimated transaction turnover.

By March 1 2026, EU countries must prepare national plans to diversify gas supplies and identify potential challenges in replacing Russian gas. To that end, companies will be required to notify authorities and the European Commission of any remaining Russian gas contracts. EU countries still importing Russian oil will also have to submit diversification plans.

In the event of a declared emergency, and if security of supply is seriously threatened in one or more EU countries, the Commission may suspend the import ban for up to four weeks.

The regulation will now be published in the Official Journal of the EU. It will enter into force one day after publication and will apply directly in all EU countries.

The European Commission also plans to propose legislation to phase out Russian oil imports by the end of 2027.