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EU Set to Propose Banning Russian Gas Imports by End of 2027

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(Bloomberg) -- The European Union is set to propose measures to ban Russian gas imports by the end of 2027, as the bloc pushes to sever ties with the country that was once its biggest energy supplier.

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The EU is moving ahead with a long-held intention to phase out Russian fossil fuels, after earlier this year delaying the release of its “road map” in order to assess the impact of US efforts to end the war in Ukraine, according to people familiar with the matter. Russian gas flows to Europe dropped sharply in the wake of Moscow’s full invasion in 2022, but it remains a substantial supplier, through a pipeline via Turkey and shipments of liquefied natural gas.

The EU plans to propose in June a ban on all gas purchases under new deals with Russia and existing spot contracts, which account for about a third of imports, to take effect before the end of the year, according to the people.

The European Commission, the bloc’s executive branch, will next month also adopt measures to end the remaining imports of Russian pipeline and LNG gas tied up in long-term contracts, but they will require a longer transition until the end of 2027, the people said.

The efforts to end reliance on Russian gas will open the way for US suppliers to send more LNG to Europe, something that President Donald Trump has repeatedly called for. Costs and security remain a key focus in the wake of the energy crisis, but the EU expects its plan will have a limited effect on prices as a wave of new LNG supply hits the global market in coming years, the people said.

The stakes are huge: The EU purchased a total of €23 billion ($26 billion) in Russian energy in 2024, exceeding its military assistance to Ukraine last year. Russian imports still accounted for 19% of the 27-nation bloc’s total gas purchases last year, after LNG shipments surged to a record after Gazprom PJSC squeezed pipeline flows.

That commission’s timeline rests on the bloc’s ability to source alternative LNG supplies from the US, Qatar, Canada and Africa, according to the people. Purchases from the US are being discussed as part of trade talks with the Trump administration, Bloomberg reported last week.

While EU gas prices are now just a 10th of the peak they reached during the energy crisis following Russia’s invasion of Ukraine in 2022, the region’s supply is still tight as it replenishes depleted reserves. Significant volumes of new supply from the US and Qatar are expected from only 2027 onward.