EU Moves to End Gas Dependency on Russia: A Historic Shift in Energy Policy

In a significant policy shift, the European Union is taking decisive steps to halt remaining gas flows from Russia, a move that has long been perceived as politically unfeasible. The Council's proposed ban on new contracts is set to take effect on January 1, 2026. Existing agreements will also see a phased elimination: short-term contracts can last until June 17, 2026, while long-term agreements are permitted until January 1, 2028. This ban encompasses both pipeline gas and liquefied natural gas (LNG). The measure will be implemented as a trade action and can therefore pass with a qualified majority, despite opposition from countries such as Hungary and Slovakia. Crucial to this process is the trilogue, the final negotiations among the European Parliament, the Council, and the European Commission, where the distinct texts will merge into a comprehensive law. The Parliament is advocating for a tougher stance than the Council, aiming for a more rapid halt to gas imports, a prohibition on the storage of Russian gas from January 1, 2026, and a proposed inclusion of oil imports in this ban starting in the same year. This point is expected to be a focal point of contention in upcoming negotiations. Alice Bah Kuhnke, a member of the Green Party in the European Parliament engaged in these discussions, emphasized the significance of this decision not just as an energy policy move, but as a critical security issue for Europe. "Finally, it seems like we are nearing the end of our gas transactions with Russia. We cannot continue to supply Putin with funds for his fossil fuels. This is a matter of both climate responsibility and the security of Europe," she expressed. Although uncertainty remains until the final negotiations conclude, there is a broad consensus supporting the gas stop date, set for January 1, 2026. All EU member states will be required to cease entering into new gas contracts with Russia, a particularly impactful decision for Hungary and Slovakia, who rely on Russian gas supplied through pipelines. Other major importers, like the Netherlands, Belgium, and France, will also experience significant financial loss as the EU curtails its gas imports. Kuhnke acknowledged that exceptions for Hungary and Slovakia would be a crucial consideration during negotiations, highlighting the complexity of achieving a unanimous agreement among member states. The factual breakdown of the proposed gas stop includes: - A ban on new Russian gas contracts effective from January 1, 2026. - Existing short-term contracts, signed before June 17, 2025, can last until June 17, 2026. - Long-term agreements are allowed until January 1, 2028. - The ban applies to both pipeline gas and LNG. - The regulation becomes law following final negotiations among the three EU entities. To date, the EU has dramatically decreased its dependence on Russian gas, reducing it from approximately 45% before the invasion to around 12-13% this year, according to a report by Reuters. The residual revenues flowing to the Kremlin largely stem from LNG transactions at ports in Belgium, France, and the Netherlands—transits that are now on a countdown as key dates and contract expiration clocks are set. Once the trilogue concludes, it will be determined whether the Parliament’s stronger stance, which includes proposals for oil sanctions and stricter measures against circumvention via storage and certificates of origin, will be incorporated into the final legislative text. Nevertheless, the political signal has been sent: the voluntary phase is over, and Europe is on the verge of ending its last direct gas dependence on Russia. Related Sources: • Source 1 • Source 2