BRUSSELS: The EU Council has formally approved a full ban on supplies of Russian liquefied natural gas (LNG) to the European Union startin...
BRUSSELS: The EU Council has formally approved a full ban on supplies of Russian liquefied natural gas (LNG) to the European Union starting January 1, 2027, and on pipeline gas - starting September 30, 2027, according to a statement released by the EU Council.
"According to the regulation, importing Russian pipeline gas and LNG into the EU will be prohibited. The ban will start to apply six weeks after the regulation enters into force. Existing contracts will have a transition period. This stepwise approach will limit the impact on prices and markets. A full ban will take effect for LNG imports from the beginning of 2027 and for pipeline gas imports from autumn 2027," the statement said.
The EU Council also introduced penalty for breaching the ban on Russian gas purchases since 2027. "Non-compliance with the new rules may result in maximum penalties of at least €2.5 mln for individuals and at least €40 mln for companies, at least 3.5% the company’s total worldwide annual turnover, or 300% of the estimated transaction turnover," the press service said.
"EU countries must prepare national plans to diversify gas supplies and identify potential challenges in replacing Russian gas" by March 1 of this year, the press service informed. "Companies will be required to notify authorities and the Commission of any remaining Russian gas contracts. EU countries still importing Russian oil will also have to submit diversification plans," it added.
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