The European Union intends to completely stop the import of Russian gas by 2027, which will be the next stage in the gradual elimination of energy dependence on Russia. About this informs Bloomberg.
Over the past year, the share of Russian gas in the structure of EU imports has decreased to approximately 19%, while it exceeded 40% before the start of the full-scale Russian invasion of Ukraine. As part of the plan to limit this dependence, the European Union plans to introduce a proposal to ban all imports of Russian gas in June. This will apply to both new contracts and existing spot contracts.
The restrictions, which cover spot contracts (about a third of total imports), are expected to take effect by the end of 2025 at the latest. The vast majority of Russian LNG, as well as pipeline gas, is supplied under long-term take-or-pay contracts that are difficult to terminate without financial loss for European buyers.
The European Commission intends to announce in the European Parliament that in June it will present a proposal for a complete ban on the import of Russian gas – both pipeline and liquefied – including contracts concluded under long-term schemes. The full ban should come into effect by the end of 2027. The implementation of this schedule will depend on how successfully the EU can refocus on LNG imports from the USA, Qatar, Canada and African countries.
After the start of Russia’s full-scale war against Ukraine, monopoly Gazprom lost two-thirds of its exports and last year recorded the lowest figures for gas sales abroad since 1985. This led to the first annual loss in the last 25 years, which reached 629 billion rubles.
Due to the loss of sales markets, the company was forced to reduce production to a historic minimum. According to estimates, in the first half of 2024, the losses of Gazprom’s gas division could reach another 480.6 billion rubles.
