The EU is on the home stretch: complete rejection of Russian gas and oil by 2027

In brief.

The European Commission has put forward a legislative proposal to phase out imports of Russian gas and oil by the end of 2027. Some of the steps have already been implemented - an embargo on marine oil and oil products, restrictions on LNG transit and grey schemes. However, there are still bottlenecks to reaching full zero - primarily Russian LNG and certain exceptions for oil through pipelines.

What exactly is Brussels preparing

On 6 May 2025, the European Commission presented a roadmap and, on 17 June, formally submitted a legislative initiative to phase out Russian gas and oil by the end of 2027. The next step is a co-decision procedure in the European Parliament and the Council of the EU.

What is already prohibited

The EU banned imports of Russian oil and oil products by sea (from December 2022 and February 2023, respectively) and restricted accompanying transportation services. In 2024, the 14th sanctions package was adopted: it bans the transshipment of Russian LNG in EU ports after a transitional period. In July 2025, the EU closed one of the key loopholes by banning imports of fuels refined from Russian oil in third countries.

Where the addiction persists

Despite the sharp decline, the «Russian footprint» is still noticeable: in 2024, the share of Russian gas in EU imports fell to ~19% (from 45% in 2021), and oil to ~3% (from 27%). The biggest hook is LNG: supplies by sea in 2024-2025 did not come to nothing and cost Europe billions of euros in favour of Moscow. Exemptions for oil via pipelines (in particular for certain Central European countries) remain an additional challenge.

How the EU is going to replace Russian volumes

The key is the REPowerEU package: energy efficiency, increasing renewable energy sources, diversifying gas imports (including LNG from the US and Qatar), and accelerating the electrification of industry and heat supply. The goal is to reduce the demand for fossil fuels and completely remove Russian imports from the energy balance by 2027.

What «holes» are still being closed

Brussels is discussing further steps against Russian LNG (including broader import bans) and the elimination of the niche of special fuels (butane, gas condensate, etc.), which is still leaking through exceptions. Analysts expect that the next sanctions packages will target these loopholes without any sharp shocks to the market. Reuters

Transition periods and contractual exceptions

Certain services under long-term contracts are subject to transitional mechanisms and limited exceptions - lawyers note that they should be «extinguished» by the end of the opt-out period to avoid protracted grey schemes.

What it means for Ukraine and the market

The EU's complete withdrawal by 2027 reduces energy blackmail and stabilises the market in the medium term, while cutting Russia's budget revenues (in August 2025 alone, about $1.4 billion from supplies to Europe). For consumers in the EU, the pace of RES and LNG/gas storage infrastructure deployment will be key to ensure that the transition is free of price spikes.

What's next

The European Parliament and the Council of the EU should agree on the details and schedule of the phased «zeroing». On the technical level, this means continuing work on security of supply, synchronisation of the gas market, investment in networks and storage, and enforcement of the bans and workarounds already in place.