Become a Member
  • Track your favourite stocks
  • Create & monitor portfolios
  • Daily portfolio value
Sign Up
Quickpicks
Add shares to your
quickpicks to
display them here!

EU agrees on deal to phase out dependence on Russian gas

3rd Dec 2025 04:03

(Alliance News) - The EU aims to end all imports of Russian gas by the end of 2027, according to an agreement reached early on Wednesday in Brussels between the governments of member states and representatives of the European Parliament.

Under the plan, for short-term contracts concluded before June 17, 2025 the ban on Russian gas imports will take effect from April 25, 2026 for liquefied natural gas and June 17, 2026 for pipeline gas.

For long-term LNG contracts, the ban will apply from January 1, 2027, in line with the EU's 19th sanctions package.

Long-term pipeline gas contracts will be phased out starting September 30, 2027, contingent on gas storage targets being met, and at the latest by November 1, 2027.

"This is a big win for us and for all of Europe," said Danish Climate Minister Lars Aagaard. "We have to put an end to EU's dependence on Russian gas, and banning it in the EU permanently is a major step in the right direction."

Finland's Ville Niinisto, lead Member of the European Parliament for the Industry, Research and Energy Committee, called the agreement a "historic outcome."

"The EU is taking giant steps towards a new era free of Russian gas and oil. Russia can never again use fossil fuel exports as a weapon against Europe," he said.

The EU has been trying to reduce its dependence on Russian energy over recent years, following President Vladimir Putin's war on Ukraine.

No exit plan for oil exports yet.

According to the agreement, the European Commission is to present a plan next year for phasing out Russian oil exports to Slovakia and Hungary by the end of 2027.

Hungary and Slovakia are the only EU countries that still import crude oil from Russia. Both are also highly dependent on Russian natural gas supplies and have repeatedly blocked far-reaching plans to support Ukraine in its defensive struggle against Russia.

The new rules are intended to supplement existing sanctions with import restrictions and ensure that EU countries become independent of energy imports from Russia in the long term and thus less vulnerable to blackmail.

The agreement is also intended to create legal certainty. While sanctions against Moscow must be renewed every six months and require unanimity among member states, the legal changes now envisaged are meant to apply permanently.

The agreement contains a safety clause in case the security of supply of one or more member states is seriously threatened. In this case, the commission could allow the affected countries to suspend import bans on gas. Only if a member state declares a state of emergency are temporary deliveries permitted.

Russia continues to make billions of dollars in profits from energy supplies to the EU despite the conflict, which Moscow started over three and a half years ago.

According to official figures, EU countries still imported 52 billion cubic metres of gas from Russia in 2024, which corresponded to around 19% of all imports. In addition, they imported 13 million tons of crude oil and more than 2,800 tons of uranium in enriched form or as nuclear fuel.

According to data from the EU statistics authority Eurostat, the EU imported liquefied natural gas worth almost EUR4.5 billion from Russia in the first half of 2025.

Last year, natural and processed gas worth EUR15.6 billion was imported from there. By comparison, gas worth EUR19.1 billion came from the US.

source: dpa

Copyright 2025 Alliance News Ltd. All Rights Reserved.

FTSE 100 Latest
Value9,701.80
Change-0.73