EU seals break with Russian gas, sets 2027 exit date

The EU Twenty-Seven have formally adopted regulations setting the bloc on a gradual exit from Russian pipeline and LNG gas imports by 2027. The new rules also introduce tighter monitoring and stronger supply diversification obligations, in line with the REPowerEU objective of ending Europe’s dependence on Russian energy.

Speaking after the adoption on Monday, Cyprus Energy Minister Michael Damianos said the move would strengthen the EU market by making it more resilient and diversified. He argued it would also help break harmful dependency and, through solidarity and cooperation, advance the Union towards a truly autonomous Energy Union.

The import ban will kick in six weeks after the regulation enters into force, while existing contracts will benefit from a transitional period. Brussels has opted for a phased approach to limit the impact on prices and markets. 

A full ban is scheduled from early 2027 for LNG and from Autumn 2027 for pipeline gas.

Before authorising gas to enter the EU market, Member States will also be required to verify the country of production.

Enforcement and penalties

On enforcement, the regulation provides for hefty sanctions in case of breaches. Fines can reach at least €2.5 million for individuals and at least €40 million for companies, with the option to calculate penalties at a minimum of 3.5% of global annual turnover or 300% of the estimated value of the transaction.

By 1 March 2026, governments must submit national diversification plans and flag critical issues in replacing Russian gas. Companies will be required to notify national authorities and the Commission of any remaining contracts.

In the event of a declared emergency posing a serious threat to supply security, the Commission will be able to temporarily suspend the import ban for up to four weeks.  

The regulation will be published in the EU’s Official Journal and will enter into force the day after publication, applying directly across all member states. The Commission also plans to propose additional legislation to eliminate remaining Russian oil imports by the end of 2027.

Building off the EU’s existing toolbox

The EU had already activated several tools to underpin this politically bold choice. The Recovery and Resilience Facility, the financial core of NextGenerationEU, is the main funding source for REPowerEU. The architecture relies largely on the roughly €225 billion in remaining loans still available, which member states can channel into dedicated REPowerEU chapters within their national recovery plans.

The political logic is relatively straightforward by EU standards. Use the RRF’s financial firepower to fund investments and reforms that make the exit from Russian energy, starting with gas, credible, while simultaneously accelerating the shift towards clean energy and more diversified supplies.

Governments are required to align RRF-funded measures with new initiatives supported by other national or EU instruments, avoiding duplication and focusing on complementarities and synergies. A pre-financing option is also available. Member states can request up to 20% of the resources allocated to REPowerEU chapters, paid in up to two instalments.

On the grants side, up to €20 billion in subsidies are financed for 60% by the Innovation Fund and for 40% by the sale of ETS allowances. Allocation across countries follows a formula that takes into account cohesion policy criteria, the level of dependence on fossil fuels and rising investment costs. Member states can also redirect resources towards REPowerEU through transfers of up to €5.4 billion from the Brexit Adjustment Reserve and cohesion funds.

Commission claims progress

On results and strategy, the Commission argues that REPowerEU has helped shield citizens and businesses from the risk of energy shortages, while accelerating the push towards clean energy and strategic autonomy. This includes diversifying supply routes and sources, reducing gas demand, enforcing storage obligations, ramping up renewable investment, speeding up permitting for green projects and enabling joint gas purchases.

Russian gas imports into the EU have meanwhile fallen from 45% in 2021 to an estimated 13% in 2025. Sanctions have wiped out Russian coal imports, while oil imports have dropped from 27% to under 3% over the same period.

To fully close the chapter on remaining Russian oil and gas supplies, Brussels presented a REPowerEU roadmap in May 2025 as a follow-up to the original plan. The new regulation is a key pillar of that effort.

Back in June 2022, the Council adopted rules requiring gas storage facilities to be filled to at least 90% of capacity ahead of each winter. The measure ensured sufficient reserves to heat homes and sustain business activity. In July 2025, the Council approved a two-year extension of these rules and introduced additional flexibility, allowing Member States to adapt to fast-changing market conditions and counter potential market manipulation.