EU Formally Adopts Russian Gas Import Ban

Most European Union member states voted on Jan. 26 to formally adopt regulations to phase out the import of Russian pipeline gas and liquefied natural gas (LNG).

The Council of the EU said in a statement that, once the ban takes effect, member states will have to verify the country of origin of gas before its importation is authorized.

Noncompliance can result in fines of 2.5 million euros ($2.97 million) for individuals, and for companies, fines could reach 40 million euros ($47.49 million), 3.5 percent of the company’s total worldwide annual turnover, or 300 percent of the estimated transaction turnover.

The EU’s 27 members have also been ordered to prepare national plans by March 1 outlining how they will diversify their gas supplies and what issues they may face in phasing out Russian fuel.

The full ban on LNG imports will come into effect on Jan. 1, 2027, and a ban on pipeline gas will come into effect on Sept. 30, 2027, or Nov. 1, 2027, if storage targets are not met for the winter, according to an EU fact sheet.

The commission also plans to introduce legislation to phase out Russian oil imports by the end of 2027.

Cyprus currently holds the rotating presidency of the Council of the EU, and its minister for energy, commerce, and industry, Michael Damianos, said that as of Jan. 26, “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,” Damianos said.

The plans form part of the EU’s REPowerEU plan, which aims to increase the bloc’s energy independence, and the related roadmap that outlines the actions needed to achieve those goals.

According to the fact sheet, the REPowerEU plan was presented in May 2022, following a March 2022 declaration by EU leaders that the EU would phase out dependence on Russian gas, coal, and oil to become energy independent.

“Russia’s war of aggression against Ukraine and its systematic weaponisation of energy have demonstrated that the EU’s overdependency on Russian fossil fuels brings with it serious security and economic risks,” the fact sheet said.

The EU said the Russian share of gas, oil, and coal in the bloc’s energy imports “dropped significantly” between 2021 and 2025. The Russian share of gas fell to 13 percent from 45 percent, and the share of oil dropped to 3 percent from 27 percent. Russian coal has been completely phased out, from a share of 50 percent in 2021.

Hungary, Slovakia Vote No

Twenty-four of the 27 EU member states voted in favor of formalizing the ban. Hungary and Slovakia, landlocked nations that receive Russian supplies via the Druzhba oil pipeline, voted against the measures. Bulgaria abstained.

Budapest and Bratislava maintain closer ties with Moscow than the rest of the bloc and have defended their continued purchase of Russian energy, saying alternatives are too expensive.

Slovak State Secretary for EU Affairs Marek Estok said in the chamber during the General Affairs Council on Jan. 26 before the vote that his country would not support the measures.

Estok said that Slovakia is a landlocked country without direct access to LNG terminals and that despite the country’s investment in infrastructure, “bottlenecks outside Slovak territory still limit access to sufficient alternative gas supply, as well as the ability to secure them at reasonable cost.”

He added that there are “serious legal and financial risks” linked to terminating long-term gas contracts, “including potential arbitration and compensation claims.”

“The regulation does not provide adequate flexibility or effective instruments for the most affected member states,” he said.

Hungarian Minister of Foreign Affairs Peter Szijjarto said Budapest will challenge the decision before the Court of Justice of the EU.

Szijjarto wrote in a post on X that “banning Hungary from buying oil and gas from Russia goes against [Hungary’s] national interest and would significantly increase energy costs for Hungarian families.”