EU agrees deal to ban Russian gas imports by 2027

(Sharecast News) - The European Union on Wednesday agreed to a full ban on imports of Russian gas from the autumn of 2027 as it moved to end the bloc's reliance on Moscow for energy needs. Coming almost four years after Russia's unprovoked invasion of Ukraine, the deal struck between diplomats and the European parliament lawmakers also contains earlier phaseout dates for liquefied natural gas and short-term supply contracts.

They also agreed that the European Commission should put forward a proposal for legislation phasing out Russian oil imports to the EU no later than end of 2027.

Russian oil was hit with sanctions after the invasion but the right-wing governments of Hungary and Slovakia, both allies of Moscow, were granted exemptions.

"We've chosen energy security and independence for Europe. No more blackmail. No more market manipulation by [Vladimir] Putin. We stand strong with Ukraine." said Dan Jørgensen, the EU's energy commissioner.

The 27 nation bloc now sources the majority of its gas from Norway and the US. Under the deal, long-term pipeline contracts - considered the most sensitive because they can run for decades - will be banned from September 30, 2027, provided storage levels are sufficient, and no later than November 1 of that year.

For liquefied natural gas long-term contracts will be prohibited from January 1, 2027. Short-term contracts will be phased out earlier: from 25 April 2026 for LNG and 17 June 2026 for pipeline gas.

Reporting by Frank Prenesti for Sharecast.com