EU Plans To Cut Off All Russian Energy Imports By 2027

oil tanker — Image for representation purposes only

The European Commission has introduced a new strategy to end the European Union’s reliance on Russian oil, gas, liquefied natural gas (LNG), and nuclear fuel by the end of 2027.

The plan aims to cut off a major source of income for Moscow, which the EU believes is funding its ongoing war in Ukraine.

The strategy outlines a step-by-step approach to phase out Russian energy imports and forms part of the EU’s 17th sanctions package against Russia since the invasion of Ukraine in 2022.

Talks on the new sanctions began Tuesday, with the Commission urging member states to submit national plans for ending all energy ties with Russia.

Under the new plan, EU countries will be required to stop signing any new gas contracts with Russia, including pipeline and LNG, by the end of 2025.

Existing contracts must be phased out by 2027. Spot market purchases will also be banned, a move expected to cut one-third of the remaining Russian gas imports.

The Commission also called for a gradual withdrawal from Russian nuclear energy. Member states have been asked to prepare plans to stop importing uranium and enriched nuclear material from Russia, which still supplies over 14% of the EU’s uranium needs.

The fresh sanctions proposal includes targeting over 100 additional oil tankers believed to be part of Russia’s “shadow fleet” used to bypass international restrictions. This would bring the total number of sanctioned vessels to over 300.

Around 50 to 60 individuals and companies are expected to be added to the sanctions list. These include entities based in China, Vietnam, Turkey, Serbia, the United Arab Emirates, and Uzbekistan.

For the first time, Litasco Middle East DMCC, the Dubai-based trading arm of Russian oil giant Lukoil, is being considered for sanctions. Lukoil was the second-largest exporter of Russian crude in 2024. Russian insurance provider VSK may also be sanctioned.

However, the Sakhalin-2 energy project, which is vital for Japan, will continue to be exempted from restrictions until at least June 2026.

Russian oil made up 27% of EU imports in early 2022 but has now fallen to just 3%. Coal imports from Russia have been completely banned. Gas imports from Russia have dropped from 150 billion cubic meters (bcm) in 2021- about 45% of the market- to 52 bcm (19%) in 2024.

EU officials revealed that in 2023, the bloc still paid around €23 billion to Russia for energy, roughly €2 billion each month. A senior official described these payments as “embarrassing,” stating that they help support Russia’s military activities.

European Commission President Ursula von der Leyen said the EU must stop depending on what she described as “an unreliable supplier.” Energy Commissioner Dan Jørgensen added that Russia has used energy as a weapon for blackmail and war funding, and said Europe must stop contributing to the Kremlin’s war chest.

According to the strategy, the EU plans to replace up to 100 bcm of natural gas by 2030. Gas demand across the bloc is expected to fall by 40–50 bcm by 2027. At the same time, global LNG capacity is expected to increase by 200 bcm by 2028, more than five times the current volume the EU imports from Russia.

Nations such as Greece, Hungary, and Slovakia continue to rely on Russian pipeline gas. Others, like Austria and Poland, have reduced but not fully ended their imports. The Baltic states have already stopped Russian energy imports.

Hungary and Slovakia, both of which maintain close ties with Moscow, are expected to oppose the new strategy. However, the Commission has hinted it may seek approval through a two-thirds majority vote in the European Parliament, instead of requiring unanimous support.

Additionally, the EU aims to crack down on Russia’s use of “shadow fleets”- oil tankers with hidden ownership and improper insurance, used to secretly export oil despite sanctions.

In a speech at the European Parliament in Strasbourg, Jørgensen stated, “Russia is a threat to all of us, Therefore, we must act.”

References: BBC, AP News

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