The European Commission is preparing to unveil a sweeping new policy requiring EU companies to terminate all remaining energy contracts with Russian suppliers by 2027, as part of a strategic shift to reduce the bloc’s dependence on Moscow. The move, first reported by the Financial Times, represents a significant escalation in the EU’s response to Russia’s invasion of Ukraine and a key step toward energy diversification.
According to officials familiar with the confidential draft plan, the Commission will mandate that companies sever all spot market gas contracts with Russian entities by the end of 2024 and eliminate all long-term contracts by 2027. The measures, which are set to be announced Tuesday, must still gain the approval of a majority of EU member states and the European Parliament before becoming law.
The initiative aims to bypass the EU’s traditional unanimity requirement for sanctions — a clause that has allowed pro-Russian member states like Hungary and Slovakia to block efforts to ban Russian gas imports outright. Instead, the new approach uses commercial contract oversight and a binding phaseout schedule to undercut Russia’s energy revenues without needing full consensus.
A senior EU diplomat told the Financial Times: “This push to get to zero will not be easy. If you want to lift all secrecy on commercial contracts, there is going to be a price for that,” noting potential price hikes as companies seek alternatives to Russian gas.
The EU’s dependency on Russian fossil fuels has drastically declined since the 2022 invasion. Prior to the war, over 40% of the EU’s pipeline gas and nearly 28% of its imported crude oil came from Russia. That share has now fallen to 13% for gas and under 3% for oil. However, Russian liquefied natural gas (LNG) exports to the EU have paradoxically risen, with Kpler data showing a record 1.2 million tonnes delivered in April 2025 alone — primarily to France, Belgium, and the Netherlands.
Despite this, the Commission’s new plan includes a crackdown on LNG imports as well, particularly targeting circumvention tactics such as gas being funneled via TurkStream or other pipelines under the guise of Azerbaijani origin.
As part of its wider energy decoupling, the roadmap will also target nuclear fuel and spare parts supplied by Russia. Countries like Finland, Bulgaria, Czech Republic, Slovakia, and Hungary — all reliant on Russian nuclear technology — will be expected to shift toward alternative providers. While most have signed agreements with U.S.-based Westinghouse to replace Russian fuel rods, challenges remain in sourcing compatible spare parts for Soviet-era reactors.
The document also reportedly includes provisions to increase oversight of commercial energy contracts, enabling EU authorities to trace fuel purchases and root out indirect transactions with Russia. Officials say this is partly intended to reassure the United States of the EU’s commitment to increasing LNG imports from American producers, potentially contributing to a broader effort to balance transatlantic trade.
Although countries like the Netherlands and Belgium have expressed support for a gas sanctions regime, opposition from Hungary remains strong. Nevertheless, the Commission’s strategy indicates a willingness to confront internal divisions to achieve geopolitical goals.
“The aim is to create a situation where holding on to Russian energy contracts becomes more of a liability than an advantage,” one EU official told Financial Times.
