The European Union proposed a complete ban on imports of Russian liquefied natural gas from Jan. 1, 2027, as
part of its latest measures to curb President Vladimir Putin’s ability to wage Moscow’s war against Ukraine.
The EU also proposed a full transaction ban on more Russian banks and financial institutions as well as trade restriction
s on entities in China and India, which have enabled Moscow to get around the bloc’s sanctions.
The shift comes just days after US President Donald Trump cal
led on the EU to step up pressure on Russia’s energy trade. The EU was originally planning to phase out Russian fossil fuels by the end of 2027.
EU Commission President Ursula von der Leyen; photo credit: Simon Wohlfahrt/Bloomberg
“Russia is showing the full extent of its contempt for diplomacy and i
nternational law,” European Commission President Ursula von der Leyen told reporters in Brussels Friday. “Ag
ain and again, President Putin has escalated — and in response, Europe is increasing its pressure.”
The EU imports about €500 million ($587 million) to €700 million of LNG from Russia every month, according to data compiled by Eurostat.
The global gas market is expected to start shifting into a surplus in the second half of next year, reducin
g the risk that the phaseout of Russian gas could put pressure on European supplies and lead to price spikes. This is a
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key factor for the EU to determine when it can cut out Russian energy.
European natural gas prices declined after the news, suggesting traders had anticipated that the ban on Russian sea
borne cargoes would come into effect earlier — before a wave of new supply from the US that is set to come online toward the end of 2026.
“The EU will be able to offset the loss of Russian LNG without major price spikes with more US supply,” said Florence Schmit, an energy strategist at Rabobank in L
ondon. “As the phaseout is not imminent, it opens up questions about the desirability of the US to impose other sanctions on Russia’s energy sector.”
The new sanctions package represents a more finely honed approach for the EU, which is responding to
Moscow’s intensified attacks on Ukraine and Russia’s recent drones incursion into Poland. EU sanctions require unanimous adoption by member states.
Cash from energy sales keeps Russia’s war going.
So we’re going after these revenues by designating 118 new vessels as shadow fleet and enablers, and banning re-insurance of listed vessels.
Our aim is to speed up the phase-out of Russian liquefied natural gas by 1 Jan 2027.
— Kaja Kallas (@kajakallas) September 19, 2025
The EU is also proposing a prohibition of companies from re/insuring vessels that have been sanctioned by the bloc, according to a statement by the EU’s top diplomat, Kaja Kallas.
“We will intensify pressure on Russia with increasingly hard-hitting sanctions, coupled with military support for Ukraine, until Russia accepts a genuine ceasefire and comes to the table with a serious proposal for peace,” Kallas told reporters in Brussels Friday.
The EU also proposed closing loopholes that allow Gazprom Neft PJSC and Rosneft PJSC, the state-controlled giant accounting for more than a third of Russia’s total oil production, to export to Europe, von der Leyen said. The EU also plans to expand sanctions on Russia’s shadow fleet to include more than 100 new vessels, meaning more than 560 ships will be listed under the bloc’s sanctions.
The bloc will also target refineries, oil traders, petrochemical companies in third countries, including in China, she said.