EU Edges Closer to Full Ban on Russian Oil and Gas Usage

The European Union (EU) is on the verge of completely banning Russian oil and natural gas imports in response to Russia’s aggressive invasion of Ukraine over three years ago. The European Commission, which acts as the EU’s main executive body, unveiled a plan on Tuesday to phase out purchases of Russian natural gas. This ban extends to gas supplied through pipelines and liquefied natural gas (LNG) delivered by sea. Beginning next year, no new contracts for imports will be permitted, and most current short-term contracts will cease within a year. Additionally, transactions under long-term contracts must end by the close of 2027. “Russia has repeatedly attempted to manipulate us by weaponizing its energy supplies,” stated European Commission President Ursula von der Leyen. “We are committed to severing this dependency on Russian fossil fuels in Europe for good.”

Furthermore, the plan proposes prohibiting Russian-owned or controlled firms from entering long-term contracts for the EU’s LNG terminal services. This ensures that these facilities can be allocated to alternative energy providers. Concerning oil, the proposal requires EU nations still purchasing Russian oil to develop strategies for eliminating these imports by 2027 altogether. Last year, Hungary and Slovakia were noted to still receive Russian crude via pipelines, as per research by the Centre for Research on Energy and Clean Air.

This plan adds substance to the EU’s “REPowerEU” initiative, launched in May 2022 to curtail the bloc’s reliance on Russian energy. Hungary and Slovakia, despite their previously pro-Russia stance, are unable to block this proposal as the European Commission crafted it using trade and energy laws. This allows the proposed measures to pass with a “qualified majority”—where more than half of EU nations, representing at least 65% of the population, must approve. Had it been proposed under sanctions law, a unanimous vote would have been necessary.

Since the initial invasion by Russia in early 2022, the EU has significantly reduced its intake of Russian energy. The Russian share of the EU’s natural gas imports dropped to 19% last year from 45% in 2021, according to EU data. Concurrently, Russia’s contribution to the EU’s oil imports shrank to a mere 3% in 2024, drastically falling from 27% at the start of 2022.

The EU has also just introduced its 18th package of sanctions against Russia aimed at further limiting the Kremlin’s oil and gas revenue. Von der Leyen asserted that such sanctions are vital “because strength is the only language that Russia will understand.” The proposed measures include dropping the price cap on Russian oil exports from $60 to $45 per barrel and enforcing a comprehensive transaction ban on Russian banks and financial institutions in third countries that facilitate Russia’s evasion of current Western sanctions. The 27 EU member states will need to collectively approve this new sanction package.