EU Gives Final Approval To A Stepwise Ban On Russian Gas Imports.

January 2026: Today, the 27 EU member states formally adopted the regulation on phasing out Russian imports of both pipeline gas and liquified natural gas (LNG) into the EU. The new rules also include measures on effective monitoring and diversification of energy supply.

The regulation exhibits to be a key milestone in delivering the REPowerEU objective of ending the EU’s reliance on Russian energy.

Michael Damianos, Minister for Energy, Commerce and Industry of Cyprus said, “as of today, the EU energy market will be stronger, more resilient and more diversified. We are breaking away from detrimental reliance on Russian gas and taking a major step, in a spirit of solidarity and cooperation, towards an autonomous Energy Union”.

On 20th January 2026, The European Parliament And The Council Of The European Union,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 194(2) and Article 207 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee

After consulting the Committee of the Regions,

Acting in accordance with the ordinary legislative procedure,

Whereas, The unlawful full-scale invasion of Ukraine by the Russian Federation in February 2022 revealed the dramatic consequences of the existing dependencies on Russian natural gas for markets and security. In their Versailles Declaration of 11 March 2022, Heads of State or Government therefore agreed to gradually decrease and eventually fully eliminate the dependency on Russian energy. In its REPowerEU Communication of 8 March 2022 entitled ‘REPowerEU: Joint European Action for more affordable, secure and sustainable energy’ and in its Communication of 18 May 2022 on the REPowerEU Plan the Commission proposed concrete measures to allow for the full diversification away from Russian energy imports in a safe, affordable and sustainable manner.

Significant progress in the process of diversifying gas supplies away from the Russian Federation has been achieved since then. As the remaining volumes of Russian natural gas entering the Union are still significant, in its Communication of 6 May 2025 on the Roadmap towards ending Russian energy imports (REPowerEU Roadmap), the Commission announced a legislative proposal to fully phase out Russian gas imports and to improve the existing framework for addressing energy dependencies. In order to ensure energy security and resilience of the Union, it is urgent and strategically needed to address all remaining energy dependencies mentioned in the REPowerEU Roadmap.

Multiple examples of unannounced and unjustified supply reductions and interruptions already before the full-scale invasion of Ukraine, as well as the weaponisation of energy by the Russian Federation since then, demonstrate that the Russian Federation has systematically exploited existing dependencies on Russian gas supplies as a political weapon to harm the Union’s economy. This has led to serious negative effects on Member States and the Union’s economic security, on the stability of the single market, on the Union’s consumers and on competitiveness in general. The Union can therefore no longer consider the Russian Federation and its energy companies reliable energy trading partners.

In January 2006, the Russian Federation stopped its natural gas supplies to some countries in South East and Central Europe in the middle of a cold spell, driving up prices and causing or threatening harm to citizens. On 6 January 2009, the Russian Federation again fully cut off gas in transit through Ukraine, affecting 18 Member States, in particular those in Central and Eastern Europe.

This supply disruption led to serious disturbances to gas markets in the region and in the whole of the Union. Some Member States had zero natural gas flows for nearly 14 days, forcing sustained shutdown of heating in schools and factories, which required them to declare a state of emergency.

In 2014, the Russian Federation invaded and illegally annexed Crimea, seized Ukrainian gas production assets in Crimea and reduced gas supplies to several Member States which had announced that they would supply Ukraine with gas, which in turn led to market disturbances and price increases and harmed economic security. The Russian Federation’s State-controlled monopoly exporter Gazprom was the subject of several Commission investigations for a possible breach of Union competition rules and has subsequently changed its conduct on the market in order to address the Commission’s competition concerns. In several cases, the competition issues at stake concerned so-called ‘territorial restrictions’ in Gazprom’s gas supply contracts, prohibiting the resale of gas outside the destination country, as well

as evidence that Gazprom was engaged in unfair pricing practices and made energy supplies dependent on political concessions, such as the participation in Russian pipeline projects or acquiring control over Union energy assets.

The Russian Federation’s unprovoked and unjustified war of aggression against Ukraine since February 2022 and subsequent weaponised reductions of gas supplies in conjunction with the manipulation of the markets through intentional disruptions of gas flows have laid bare vulnerabilities and dependency in the Union and its Member States, with the obvious potential of a direct and serious impact on the functioning of the Union gas market, the Union’s economy and its essential security interests, as well as the potential of direct harm to Union citizens because energy supply disruptions can harm citizens’ health or life.

Evidence shows that the state-controlled company Gazprom intentionally manipulated the Union’s energy markets in order to drive up energy prices. Large underground storages in the Union controlled by Gazprom were left at unprecedentedly low levels, and Russian companies reduced sales at Union gas hubs and fully discontinued the use of their own sales platform before the invasion, which affected short-term markets and aggravated the already tight supply situation after the Russian Federation’s unlawful invasion of Ukraine.

As of March 2022, the Russian Federation systematically halted or reduced deliveries of natural gas to Member States, leading to significant disturbances to the Union gas market. This affected in particular supplies to the Union via the Yamal pipeline, supplies to Finland as well as the Nord Stream 1 pipeline, where Gazprom first reduced flows and eventually shut down supplies via the pipeline entirely.

According to the regulation, importing Russian pipeline gas and LNG into the EU will be prohibited. The ban will start to apply 06 weeks after the regulation enters into force. Existing contracts will have a transition period. This stepwise approach will limit the impact on prices and markets. A full ban will take effect for LNG imports from the beginning of 2027 and for pipeline gas imports from autumn 2027.

Before authorising entry of gas imports into the Union, EU countries will verify the country where gas was produced. Non-compliance with the new rules may result in maximum penalties of at least €2,5 million for individuals and at least €40 million for companies, at least 3.5 % the company’s total worldwide annual turnover, or 300% of the estimated transaction turnover.

By 1 March 2026, EU countries must prepare national plans to diversify gas supplies and identify potential challenges in replacing Russian gas. To that end, companies will be required to notify authorities and the Commission of any remaining Russian gas contracts. EU countries still importing Russian oil will also have to submit diversification plans.

In the event of a declared emergency, and if security of supply is seriously threatened in one or more EU countries, the Commission may suspend the import ban for up to four weeks. The Commission also plans to propose legislation to phase out Russian oil imports by the end of 2027.

Following Russia’s war of aggression against Ukraine and the use of energy as a weapon, EU leaders agreed, in the Versailles Declaration of March 2022, to phase out dependence on Russian fossil fuels as soon as possible.

Consequently, gas and oil imports from Russia to the EU have both decreased significantly in recent years. However, while imports of oil have dropped to below 3% in 2025 as a result of the current sanctions regime, Russian gas still accounts for an estimated 13% of EU imports in 2025, worth over €15 billion annually. This leaves the EU exposed to significant risks in terms of its trade and energy security.

Team Maverick.