The European Union (EU) has decided not to use Russian natural gas and oil starting Jan. 1, 2028.
The EU Commission adopted regulations for implementing the roadmap for phasing out Russian fossil fuels during a weekly meeting held in Strasbourg, France, on the 17th (local time). Following the announcement of the roadmap last month, detailed implementation plans were decided that day, resulting in an annual impact of 22 billion euros (about 34.7 trillion won) on Russia.
New import contracts signed after the adoption of the regulations will be halted starting next January. Existing short-term contracts of less than one year will stop imports from June 17 next year. Long-term contracts must be terminated by Dec. 31, 2027. Providing services for accessing liquefied natural gas (LNG) terminals in the EU to customers of Russian nationality will also be banned from next January. However, the Commission included an exception clause that allows for emergency measures if there are problems with energy supply security in one or more member states during the gradual import ban implementation process.
According to the EU, the import volume of Russian gas was 35 bcm (billion cubic meters) last year, of which 20 bcm was in liquefied natural gas (LNG) form. The remainder was supplied directly through pipelines. This is a significant reduction compared to 45% before the outbreak of the Ukraine war, but in monetary terms, it still amounts to 15 billion euros (about 23.7 trillion won). Russian crude oil will also be phased out of the EU market by the end of 2027, totaling 7 billion euros (about 11 trillion won).
The Commission noted that the regulations were designed to aim for a 'complete separation' from Russian fossil fuels while considering the time needed to secure alternative sources of supply. EU member states must submit a detailed plan for energy diversification, aimed at substituting the ban on Russian gas and oil, to the Commission by next March.
For the Commission's proposal to be implemented as originally planned, negotiations between the Council, composed of the 27 EU countries, and the European Parliament, along with individual approval votes, must take place. Hungary and Slovakia have expressed opposition even before the regulation was announced. The Commission has anticipated that if more than 15 countries among the 27 member states, representing over 65% of the total population, support the proposal, the voting requirement will be met, and it will likely pass.