Brussels – By the end of 2027, not a single cubic metre of gas or a barrel of oil from Russia will circulate in the European Union. In order to “turn off the tap and put an end to the Russian fossil fuel era in Europe forever’,” Brussels presented today (17 June) a tight timetable by which it will phase out all existing short- and long-term contracts, and it ensured its adoption, bypassing the vetoes of Hungary and Slovakia—the two member states still heavily dependent on Moscow’s crude oil.
The legislative proposal outlined by the EU Commissioner for Energy, Dan Jørgensen, envisages, first of all, that all contracts with Russian suppliers signed from today onwards will be terminated as of 1 January 2026. This is because “we do not want to see a rush for Russian gas now in the next five months,” explains a senior official. Six months later, it will be the turn of the short-term supply contracts already in force, which will be terminated by 17 June 2026 at the latest. More time will be available for those with long-term contracts, which will expire on 1 January 2028. Across the Union, nine long-term contracts are still in place for the supply of Russian gas and oil. Long-term contracts for LNG terminal services for Russian customers or controlled by Russian companies will also be banned.
Termination of contracts will be possible for ‘force majeure’, the EU executive explains. In this way, European contracting companies should be protected in the event of legal challenges. “We want to limit the burdens and possible risks for our companies,” said Jørgensen. But the Commission categorically excludes the possibility of financial compensation. To ensure enforcement, the regulation will require all companies with Russian gas supply contracts to provide the necessary information to the Commission and customs authorities. “We are not asking to disclose sensitive information, such as prices; we are asking for the origin of the gas,” a senior official points out.
Brussels ensures that the proposal “is designed to preserve the EU’s security of energy supply while limiting the impact on prices and markets.” In 2024, the EU imported 54 billion cubic metres of gas from Russia (19 per cent of total imports) and 13 million tonnes of oil (3 per cent of total imports). In the first case, 10 countries still rely on supplies from Moscow. In the case of crude oil, only Slovakia and Hungary remain.
In order to circumvent the opposition of Budapest and Bratislava, which already yesterday stood in the way of an EU Council document on energy security that advocated a Russian gas farewell, the European Commission has decided that the legal basis for the regulation will be that provided by the treaties for the common energy and trade policy. Unlike sanctions, which require unanimous approval, a qualified majority of member states will be sufficient for adoption. “Nobody will be able to veto it,” Jørgensen made clear. He warned that, for those who do not implement the measures, “there will be legal consequences as for any other EU legislation.”
The governments of the 27 will have to hastily draw up national diversification plans with precise measures and intermediate steps for the phasing out of gas and oil imports from Russia by the end of the year. “The Commission will support and cooperate with them,” the Danish Commissioner assured. Included in the regulation is a sort of emergency clause, which will allow the Commission to temporarily authorise bans in crisis situations. “But we do not expect it to play any role in practice,” clarified a senior official.
The EU is convinced that it has the recipe to ensure that energy prices do not skyrocket, thanks to sufficient alternative suppliers on the global gas market, a well-interconnected EU gas market, and sufficient import infrastructure within the EU. Increased LNG from Qatar, the US and North Africa, as well as “increased supplies from non-LNG sources available in Central and South-Eastern Europe,” should replace Russian fossil fuels.
Missing from today’s legislative proposal is a strategy to break free from dependence on Russian uranium, the fuel for European nuclear power plants. In 2024, 7 member states imported 2,800 tonnes of enriched uranium from Moscow. The goal was included in the roadmap for energy independence from Moscow presented on 6 May, but “will be addressed at a later stage,” the EU executive admits.
English version by the Translation Service of Withub
