The political leadership of the European Union wants the bloc’s countries to completely abandon purchases of Russian gas in the next two years. To this end, Brussels is introducing legislative initiatives that should become a guideline for companies operating in the gas market.

“Ukrainian Energy” has delved into the details of European innovations aimed at combating Russian gas and found out why business considers their practical implementation a “legally difficult task.”

What the European Commission is proposing

The “blocking proposals” of the European Commission (EC) cover the supply of all types of Russian gas – both that transported by pipelines and that transported by sea tankers in a liquefied state. According to the plan, which was a response to the “Roadmap” published last month, such a complete ban should come into effect by the end of 2027.

The plan includes a number of legal measures based on trade law to circumvent vetoes from Slovakia and Hungary, which still maintain strong ties with the Kremlin and have a reputation as Russian satellite states. The EC also refers to articles of the EU founding treaty that oblige all members of the bloc to ensure energy security.

In a statement published on June 17, the EC proposes to integrate into the legislation a commitment to end long-standing energy relations with Russia - "the former largest supplier of gas to European consumers." This commitment should be a response to Moscow's full-scale invasion of Ukraine in February 2022.

In particular, the EC indicates that any new contracts for the supply of Russian gas signed since June 16 of this year should be prohibited from January 1, 2026.

While the legislative innovations are being discussed in the European institutions, companies will still be able to conclude gas agreements with Russian counterparties. “But if they are approved without changes after completing the necessary bureaucratic procedures, all such contracts should be terminated from next year,” the EC representative explained. “We did not want to allow a massive advance creation of Russian gas reserves in the next six months to circumvent this ban,” he emphasized.

The EC also proposes to impose a ban on the conclusion of long-term contracts for regasification services for liquefied gas that comes from Russia directly or from intermediary companies controlled by Russian structures.

“This will provide an opportunity to free up LNG terminal capacities for alternative suppliers,” the EC representative said.

Among the additional restrictive measures, he also named the introduction of a rule that requires EU countries to develop “clear plans for a gradual phasing out of Russian gas purchases.”

To track the transportation of the resource from Russia, European importers will be required to provide the EC and national control authorities such as customs with “detailed contract data”. In the case of LNG, they must indicate: the port of first loading, delivery points and schedules, as well as the conditions for suspending or refusing supplies if they are related to Russia. In addition, after the adoption of the draft law, importers will be required to report on changes to the terms of existing contracts. Overall, this monitoring system will allow the EU to effectively determine the actual origin and place of export of natural gas, the European Commission is convinced.

Possible exceptions

As part of the EC’s broad policy of refusing to purchase Russian fossil fuels, EU countries must terminate existing gas contracts with Russia’s Gazprom by June 17, 2026. But landlocked states will be able to import gas under existing long-term pipeline contracts until January 1, 2028, to give them enough time to find alternative suppliers.

This condition applies to Hungary and Slovakia, which still receive gas through the TurkStream pipeline and consider the European Commission's plan harmful to European energy security.

In response, Hungarian Foreign Minister Péter Szijjártó has threatened to stop electricity exports to Ukraine if Brussels "imposes a complete rejection of Russian energy carriers" (from which Ukraine receives almost 40% of its electricity from abroad when its domestic deficit arises). "This EU plan is a complete violation of the sovereign right of member states to determine their own energy policy," he said.

Slovakia’s Deputy Economy Minister Vladimir Šimonjak also expressed his dissatisfaction with the “EU’s anti-Russian plan,” even with the exemption until 2027. “Our contract with Gazprom is valid for a longer period, and it is not clear who will be responsible for possible fines. It is even less clear where we will get gas for our economy after 2028,” he said.

Despite pro-Russian statements by Slovak Prime Minister Robert Fico, the country’s government has so far supported EU sanctions against Russia. But it has recently made it clear that it will oppose further restrictions, especially in the energy sector. “This is not about the attitude towards Russia, but about the vital interests of our state, energy security and sovereignty,” Robert Fico added.

However, as Ukrainian Energy reported, experts from the Center for the Study of Democracy and the Center for Research on Energy and Clean Air (CREA) concluded that the arguments of Hungary and Slovakia regarding the need for Russian gas are a manipulation. Their research showed that these two countries have enough alternatives, but refuse to use them in order to “preserve hundreds of millions of profits.”

The rest of the European Union is convinced that the threat to energy security is precisely dependence on Russian fuel. “The less energy we import from Russia, the more secure and independent Europe will be,” said Dan Jørgensen.

Legal precedent

The peculiarity of the EC legislative proposal to ban Russian gas purchases is that it takes the form of a regulation based on EU rules on energy and trade. Therefore, this document must be approved by the European Parliament and the Council of the EU in order to become binding.

The regulation must receive at least 55% of the votes in the Council of the EU among the governments of the member states (i.e. 15 out of 27), which together represent the interests of 65% of the EU population. This is called a “qualified majority”.

“Thanks to this legal basis, no country will have a veto right,” stressed Energy Commissioner Dan Jørgensen, answering a question about the opposition of Hungary and Slovakia.

“This type of vote sets a precedent for introducing bans through legislation. It will be a landmark decision, but it will not be easy to adopt,” said Mariusz Kawnik, a representative of the Polish presidency of the Council of the EU. In his opinion, countries will need to agree on “careful legal wording.”

EC proposals are usually subject to change during the approval process. In order for the phased ban on Russian gas to take effect from January 1, 2016, the Parliament and the Council of the EU are seeking to speed up the consideration of the new regulation. After publication in the EU Official Journal, it will become directly applicable in all member states from the date precisely specified in the document.

Risks and consequences

According to the Ember think tank, in 2024, Russian gas accounted for 14% of total fossil fuel imports into the EU, while by 2022 this share reached 40%. However, last year's figure is 18% higher than in 2023, as the European Union increased its purchases of LNG from Russia. By country, Italy became the largest importer of Russian gas in 2024, followed by Hungary, France and Spain.

At the same time, Russian gas on the European market is gradually replacing LNG from the USA, Qatar and North African countries. The European Commission is also actively promoting a policy of reducing gas consumption. According to data from the Bruegel think tank, demand for natural gas in Europe has decreased significantly since the beginning of 2022. In 2022, EU countries, together with the UK, used 11% less gas than on average in 2019–2021, and in 2024 consumption fell by 18%.

France and Spain have large ports where powerful LNG terminals are located. They argue that a significant portion of Russian gas entering their territory is transited to consumers in other EU countries. French Industry Minister Marc Ferracci said Paris supports the desire to diversify supplies. And Madrid has proposed that the EU cover compensation for European companies in the event of legal claims from Russia due to early termination of contracts.

European Energy Commissioner Dan Jorgensen assures that the EC seeks to act in such a way that “no country has problems with security of supply and that prices remain as low as possible.”

However, business remains concerned about legal risks and possible forced costs of compensation to Russian counterparties for violating the terms of gas agreements.

“Early termination of contracts with Gazprom or Novatek in order to timely abandon Russian fuel remains a legally complex task. The main problem we see is how companies will interpret the issue of force majeure if they cannot fully fulfill the terms of existing Russian contracts,” said Mariusz Kawnik, representative of the Polish presidency of the Council of the EU. “The market expects more clarity and clear signals from European legislators,” he concluded.

Brussels assures that it will actively cooperate with EU member states on diversifying supplies and modernizing energy infrastructure - especially in those states that will be most affected by restrictions on Russian gas purchases. “We maintain a close dialogue and do everything possible to reduce the expected negative consequences,” said Dan Jorgensen.

He stressed that the ban on Russian gas imports will be mandatory for all EU countries. And if the states do not present national alternative procurement plans by March 1, 2026, this may have legal consequences.

Svitlana Dolinchuk, specially for Ukrainian Energy