European Union lawmakers announced a landmark energy agreement on 3 December 2025 that will phase out imports of Russian gas, liquefied natural gas, oil, and petroleum products. The deal emerged from negotiations between the European Parliament and European Council and aims to eliminate dependence on Russian fossil energy flows by 2027.
The regulation prohibits all new contracts for Russian energy beginning on 1 January 2026. This marks the earliest binding restriction approved at the EU level. Existing short-term LNG contracts concluded before 17 June 2025 must end by 31 December 2026. Long-term pipeline gas contracts face termination by 1 November 2027 under strict implementation conditions.
Member states noted that transitional deadlines were structured to maintain energy stability while dismantling Russian supply channels. Energy ministries must submit diversification plans after the regulation enters into force to detail alternative suppliers, contract durations, infrastructure availability, and ongoing domestic restrictions on Russian energy.
Lead negotiator for the International Trade Committee, Inese Vaidere, emphasized that continued spending on Russian energy directly strengthens Moscow during the ongoing war in Ukraine. She described the agreement as a moral and strategic step designed to limit Russian revenue streams that support military operations and undermine European security interests.
The agreement reinforces the original REPowerEU proposal by introducing enhanced monitoring, uniform maximum penalties, and comprehensive origin verification procedures. These measures target indirect deliveries via intermediary states or shadow fleets that enabled Russian shipments to enter European markets despite sanctions and national restrictions.
A suspension clause remains in the regulation to address severe supply emergencies. Under this provision, the European Commission may authorize temporary and narrowly defined exemptions if a member state experiences documented shortages. The clause applies only to short-term contracts and expires once emergency conditions are formally lifted.
The European Commission must conduct a full review within 2 years of implementation to evaluate the effectiveness of the authorization system, enforcement actions, reporting structures, and diversification progress. Findings from this review may trigger amendments designed to close new circumvention pathways or accelerate the overall phase-out timeline.
Officials framed the agreement as a turning point for long-term energy security, geopolitical independence, and market resilience. The strategic shift is expected to redirect European demand toward non-Russian suppliers, reshape global LNG flows, elevate investment in alternative infrastructure, and reduce the influence Russia previously exerted over the EU.
Several EU countries will be most affected by the phase-out. Hungary and Slovakia have long been among the largest importers of Russian pipeline gas and crude oil. France, Belgium, Spain, and the Netherlands are among the top importers of Russian liquefied natural gas. Note that Italy has low exposure to Russian energy, and Slovenia depends on regional hubs.
FURTHER READINGS AND REFERENCES
- Council of the European Union. 3 December 2025. “Council and Parliament Strike a Deal on Rules to Phase out Russian Gas Imports for An Energy Secure and Independent Europe.” Press Release. Council of the European Union. Available online
- EPP Group in the European Parliament. 3 December 2025. “Agreement Reached to Turn Off Tap on Russian Oil and Gas.” Newsroom. EPP Group in the European Parliament. Available online