Eu To Unveil Detailed Plan To Cut Russian Oil And Gas Imports Next Month

The EU is set to unveil a comprehensive plan to end its reliance on Russian oil and gas by 2027, following delays.

The European Commission will release the strategy next month, addressing the EU’s commitment to quit Russian fossil fuels following Moscow’s 2022 invasion of Ukraine, reported Reuters.

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The initial plan was postponed due to uncertainties surrounding US President Donald Trump’s proposed tariffs, which could impact EU-US energy trade discussions.

Despite reduced Russian pipeline gas deliveries since 2022, the EU increased imports of Russian liquefied natural gas (LNG) last year, with Russia accounting for 19% of the EU’s total gas and LNG supply in 2024.

While the EU has not sanctioned Russian gas imports, Hungary has vowed to block energy sanctions that require unanimous EU approval, the report said.

Some governments are hesitant to sanction Russian LNG without securing alternative supplies.

The Commission has not specified the tools it will propose to expedite the Russian energy phase-out, though the Bruegel think tank suggests imposing tariffs on Russian gas imports.

The EU may increase LNG purchases from the US, which helped fill the Russian supply gap during the 2022 energy crisis.

The US was Europe’s third-largest gas supplier last year after Russia and Norway.

However, businesses and EU diplomats’ have expressed concerns about potential vulnerabilities from relying on US gas, especially as Trump considers energy a trade negotiation tool.

Meanwhile, Russia’s new energy strategy anticipates stable crude production and significant growth in natural gas production and exports over the next 25 years.

Russian pipeline gas exports to Europe have collapsed since the 2022 invasion, but crude exports continue globally.

Russia is aiming for natural gas exports of 293 billion cubic metres (bcm) by 2030, up from 146bcm in 2023, potentially reaching 438bcm by 2050.

The strategy also projects stable annual oil production of 540 million tonnes (mt) through 2050, slightly increasing from 531mt in 2023.

Oil exports are expected to remain stable at 235mt annually from 2030 to 2050.

However, US sanctions have hindered LNG deliveries from Russia’s Arctic LNG-2 plant, which began production in December 2023.

Russia expects LNG exports to rise to 142bcm by 2030 from 45bcm in 2023, further increasing to 241bcm by 2050, according to its energy strategy.

Russia’s oil shipments through the Baltic Sea declined by around 10% in the last four months of 2024 due to the effects of EU sanctions.