The European Union intends to propose measures to ban the import of Russian gas by the end of 2027, amid efforts by the bloc to sever ties with the country that was once its largest energy supplier, Bloomberg reports, writes UNN.
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Despite efforts to reduce purchases after Russia's invasion of Ukraine, cheap Russian gas imports are difficult to eliminate at a time when the 27-nation bloc is struggling to lower energy prices, the publication writes. As noted, the biggest headache for Europe is the jump in supplies of Russian liquefied natural gas, which has jumped to a record level after PJSC Gazprom significantly reduced pipeline supplies.
Imports from Russia have fallen to about 19% of total EU gas purchases last year from more than 40% before the war.
"To continue implementing the plan to limit this dependence, the EU plans to propose in June to ban all gas imports under new agreements with Russia and existing spot contracts. These measures, covering spot contracts, which account for about a third of imports, will take effect no later than the end of 2025," the publication said.
It is reported that, like pipeline gas, most of Russia's LNG is purchased under long-term contracts with European buyers with strict "take or pay" conditions - and they are still difficult to evade.
In plans to be unveiled in Strasbourg on Tuesday, the European Commission is set to announce next month a proposal to ban imports of Russian gas, both via pipeline and in the form of LNG, under these long-term agreements. The ban will take effect by the end of 2027
According to people familiar with the matter, this timeline depends on the bloc's ability to obtain alternative LNG supplies from the US, Qatar, Canada and Africa. Purchases from the US are being discussed as part of trade talks with the Trump administration, Bloomberg reported last week.
According to people, the plan to phase out national gas will affect prices and energy security, given the large volumes of LNG worldwide expected to come to market in the coming years. According to people, the plans may be changed before the announcement on Tuesday.