economy
January 27, 2026
EU moves to cut off Russian gas
The EU has approved a plan to fully ban Russian gas by late 2027, even as some members warn of higher costs and legal challenges
TL;DR
- EU member states have finalized a regulation to phase out Russian gas imports by September 30, 2027, including LNG.
- Non-compliance with origin verification for gas imports can result in substantial fines for individuals and companies.
- A safety valve allows for temporary suspension in declared fuel emergencies, though critics doubt its practical reversal capability.
- Hungary and Slovakia are challenging the regulation, viewing it as against their national interests and predicting higher energy costs.
- The EU has increasingly relied on US LNG to replace Russian gas, which was historically cheaper.
- European gas prices have risen significantly in early 2026 due to colder weather and geopolitical uncertainty, with storage levels critically low.
- High energy prices threaten the EU's industrial competitiveness, leading to shutdowns and bankruptcies, particularly in Germany.
- Analysts warn that a complete rejection of Russian gas could create shortages, further inflate prices, and lead to de-industrialization in the EU.
- Opponents argue the EU is merely swapping dependence on Russian gas for more expensive US LNG, with potential vulnerabilities in future crises.
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