FX.co ★ EU Moves to End Russian Energy Imports by 2028

On Monday, EU energy ministers endorsed a plan to gradually cease the importation of Russian oil and gas by January 2028, as stated by the Council of the European Union. This proposal, which gained approval during a meeting in Luxembourg, outlines a ban on new Russian gas contracts starting January 2026, the cessation of short-term contracts by June 2026, and the termination of long-term agreements by 2028. However, the proposed legislation will still undergo negotiations with the European Parliament before becoming definitive. This initiative is intended to reduce the energy revenues that Russia utilizes to finance its conflict in Ukraine. At present, Russia accounts for approximately 12% of the EU's gas supply, a decline from 45% prior to the 2022 invasion, with countries like Hungary, France, and Belgium still maintaining imports. The proposal was specifically designed to secure approval, despite opposition from Hungary and Slovakia, requiring a “qualified majority” vote that prevents one or two member states from blocking it. Provisions have also been made for countries that are landlocked. Additionally, the EU is formulating a new sanctions package which may accelerate the ban on Russian LNG imports by a year, targeting implementation by January 2027.