EU Phase Out of Russian Pipeline Gas and Liquefied Natural Gas (LNG) Begins
RUSSIA – The European Union’s 27 members approved new rules on Monday for phasing out the Russian pipeline gas and liquefied natural gas (LNG).
The regulation includes provisions on strict monitoring, diversification of supply and penalties for violations, the Council of the EU said in a statement.
Under the regulation, imports of Russian gas will be gradually prohibited, starting six weeks after the law enters into force. Existing contracts will be allowed to run during a transition period to limit market disruption and price shocks.
A full ban on LNG imports will apply from the beginning of 2027, while pipeline gas imports will be prohibited from autumn 2027.
EU countries will be required to verify the origin of gas before authorizing entry into the bloc. Companies must also notify national authorities and the European Commission of any remaining contracts involving Russian gas.
Member states must submit national plans by March 1, 2026, outlining how they will diversify gas supplies and address potential risks linked to replacing Russian imports. Countries still importing Russian oil will also have to prepare diversification strategies.
The regulation sets heavy penalties for non-compliance, including fines of at least €2.5 million (nearly $3 million) for individuals and €40 million ($47.5 million) for companies, or up to 3.5% of a firm’s global annual turnover.
In emergency situations where energy security is seriously threatened, the European Commission will be able to suspend the ban for up to four weeks.
The commission is also expected to propose legislation to phase out Russian oil imports by the end of 2027.
