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European Union

EU Unveils Plan to Phase Out Russian Gas Imports by 2027

Strategic Insights

— 2 min read

The European Union has outlined a plan to phase out its remaining gas imports from Russia by the end of 2027, a move aimed at reducing the bloc's dependence on Russian fossil fuels. The plan, introduced by EU energy chief Dan Jorgensen, would ban new contracts and existing short-term spot contracts with Russian suppliers by the end of 2025, with all remaining imports to be phased out by the end of 2027. This decision comes amid ongoing efforts to reduce Europe's reliance on Russian energy, with the EU having enacted a ban on Russian oil in late 2022 in response to Moscow's invasion of Ukraine.

Key Takeaways:

  • The EU plans to phase out its remaining gas imports from Russia by the end of 2027, with a ban on new contracts and existing short-term spot contracts with Russian suppliers by the end of 2025.
  • Russian gas imports currently account for 17.5 percent of the EU's total gas imports, with some member states more dependent on Moscow's liquefied natural gas (LNG) than others.
  • The EU seeks to increase its LNG imports from the United States, with the United States already the bloc's largest supplier of LNG, making up 45.3 percent of the market.
  • France would face a significant impact from any move away from Russian LNG, with the country increasing its Russian LNG imports by 81 percent between 2023 and 2024.
  • The EU has reduced its dependence on Russian fossil fuels since the 2022 invasion, with the percentage of gas imports from Russia decreasing from 45 percent to 18 percent and oil imports decreasing from one-in-five barrels to one-in-fifty.

Statistics:

  • 17.5 percent: The percentage of the EU's gas imports that come from Russia.
  • 45.3 percent: The percentage of the EU's LNG market supplied by the United States.
  • 81 percent: The increase in France's Russian LNG imports between 2023 and 2024.
  • 2.68 billion euros ($3 billion): The income earned by Russia from increased LNG imports by France in 2024.
  • 2022: The year in which the EU enacted a ban on Russian oil in response to Moscow's invasion of Ukraine.
  • 2025: The year by which the EU plans to ban new contracts and existing short-term spot contracts with Russian suppliers.
  • 2027: The year by which the EU plans to phase out its remaining gas imports from Russia.

Sources:

  • 'Much more to do', says von der Leyen after Ukraine war update
  • Institute for Energy Economics and Financial Analysis (IEEFA)
  • Financial Times
  • Republica

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