EU's REPowerEU Plan Aims to Eliminate Russian Gas and Oil Imports by 2028
The European Union has outlined a comprehensive plan under its REPowerEU initiative to completely phase out imports of Russian gas and oil by the end of 2027, aiming to bolster energy security and market stability across the bloc.
According to BFMTV, the European Commission presented the legislative proposal on Oct. 17, 2023. It introduces a phased ban on both pipeline gas and liquefied natural gas (LNG) from Russia, starting with the suspension of all new import contracts signed after October 17, 2023, which will take effect in January 2024. From Jan. 1, 2026, the import of Russian gas under new contracts will be formally prohibited.
Short-term existing contracts will expire by June 17, 2026, with exceptions granted only to landlocked countries receiving pipeline gas through long-term agreements, which may continue until the end of 2027. Furthermore, from January 1, 2028, all contracts for LNG terminal services involving Russian clients or entities controlled by Russian firms will be banned.
Despite opposition from some member states, including Hungary and Slovakia, the European Commission intends to adopt the regulation via qualified majority voting, bypassing the need for unanimous approval, Mediapart reported.
Each EU member state will be required to submit national plans detailing specific measures and milestones to phase out Russian fossil fuel imports. These plans are designed to ensure a coordinated and consistent approach across the EU.
"Russia has repeatedly used its energy exports as a tool of coercion," said European Commission President Ursula von der Leyen, as quoted by Il Sole 24 Ore. "We are committed to ending our dependency and closing the chapter on Russian fossil fuels in Europe." Dan Jørgensen, European Commissioner for Energy, added: "The less energy we import from Russia, the more secure and independent Europe becomes."
To support the transition, companies holding contracts for Russian gas will be required to disclose them to the European Commission. Importers must also provide customs authorities with comprehensive documentation detailing the gas's route from origin to point of entry into the EU.
The European Commission asserts that the EU gas market is sufficiently interconnected and equipped with the infrastructure needed to support this transition. It also notes the availability of alternative suppliers in the global market to maintain energy security and competitiveness, according to Il Sole 24 Ore.
Since Russia's invasion of Ukraine in 2022, the EU has significantly reduced its reliance on Russian fossil fuels. Russian gas imports, which accounted for 45% of EU consumption in 2021, have dropped to 19% in 2024 and are projected to decline to 13% in 2025 due to the cessation of gas transit through Ukraine, reported SKAI. Nevertheless, EU member states still spent €23 billion on Russian fossil fuels in 2024, with gas alone comprising €15 billion of that total, BFMTV noted.
The Commission, alongside the Agency for the Cooperation of Energy Regulators (ACER), will monitor the implementation and impacts of the transition. Safeguards have been included in the proposal to mitigate gas market volatility and provide legal protections for businesses during the phase-out process.
The legislative package will now proceed to negotiations with EU member states and the European Parliament. Approval will require backing from at least 15 out of 27 member countries, representing at least 65% of the EU's population, according to BFMTV.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Int'l Business Times
3 hours ago
- Int'l Business Times
Trump Branded a Dictator By New Gold Statue in DC: 'The Most Feared Person'
A new statue has appeared on the National Mall in Washington DC, seemingly branding President Donald Trump a dictator and featuring quotes that purport that message. The statue features a large golden thumb crushing the statue of liberty atop a pedestal. The plaque emblazoned onto the pedestal reads "Dictator Approved." It is accompanied by a quote from Hungarian Prime Minister Viktor Orban, a staunch Trump ally. "The most respected, the most feared person is Donald Trump," the quote reads. Another quote from Russian President Vladimir Putin reads, "President Trump 'is a very bright and talented man.'" A third, attributed to North Korea's Kim Jung Un reads, "Your Excellency. A 'special' relationship. The extraordinary courage of President Trump." "It's huge and just sticks out in the mall," said Corinne, a passerby who flagged the statue to the Huffington Post. Social media users reposted images of the statue in amusement. "Trump is dictator-approved. A new statue on the National Mall," one user said. "Amazing, just saw A Giant Statue of 'Trump as a Dictator' On The National Mall in DC," wrote a Reddit user. "Brilliant, love this," another user wrote. Similar statues and monuments were installed in DC by activists last fall. A bronze colored "poop" monument appeared before the 2024 election "honoring" the participants of the Jan. 6 insurrection. Another poop monument appeared near the Capitol, seemingly dedicated to Trump. Originally published on Latin Times
Int'l Business Times
4 hours ago
- Int'l Business Times
EU Chief Says Pressure Off For Lower Russia Oil Price Cap
EU Commission Chief Ursula von der Leyen on Tuesday said surging energy prices have reduced the urgency to slash the price cap on Russia's global oil exports. The European Commission, the EU's executive arm, had suggested cutting the current oil price cap from $60 to $45 as Moscow drags its feet on a ceasefire in Ukraine. The measure would have been a major component of a fresh wave of sanctions against Russia planned by the EU, with hopes that the United States would also commit. The EU had said it would make its case at the G7 summit being held at a wooded resort in Alberta, Canada, but the gathering was overshadowed by the conflict between Israel and Iran that sent US President Donald Trump home early to handle the crisis. The current $60 cap "had little effect, but in the last days, we have seen that the oil price has risen [and] the cap in place does serve its function," von der Leyen told reporters on the sidelines of the G7 meeting. "So for the moment, there's little pressure on lowering the oil price cap," she added. The existing cap was a G7 initiative aimed at limiting the amount of money Russia makes by exporting oil to countries across the world. It was designed to limit the price Moscow can get for oil by banning shipping firms and insurance companies from dealing with Russia to export above that amount. Under the leadership of the previous Biden administration, it was set at $60 by the G7 in late 2022, months after the invasion of Ukraine. To have the most impact, the EU and other G7 partners need to get the United States to follow suit and agree to the price cut. But Trump so far has frustrated Western allies by refusing to impose new sanctions on Russia despite President Vladimir Putin's failure to agree to a Ukraine ceasefire. Von der Leyen said the G7 leaders, with Trump still present, on Monday discussed coordinating on sanctions against Russia "to put more pressure" on Russian President Vladimir Putin. The EU's latest proposal for an 18th round of sanctions since Russia's invasion also includes measures to stop the defunct Baltic Sea gas pipelines Nord Stream 1 and 2 from being brought back online. "The fact that we have just put another hardened, biting package of sanctions on Russia is proof" of the EU's continued support for Ukraine, von der Leyen said.
Int'l Business Times
7 hours ago
- Int'l Business Times
G7 Rallies Behind Ukraine After Abrupt Trump Exit
Group of Seven powers, holding talks Tuesday at a summit that Donald Trump left early, promised Ukrainian President Volodymyr Zelensky fresh support as Russia stepped up attacks on its neighbor. The US president, who has had a volatile relationship with Zelensky and had been due to meet him, flew out of the summit in the Canadian Rockies late Monday to return to Washington to focus on the Israel-Iran conflict. Zelensky arrived at the wooded mountain resort of Kananaskis after Russia ravaged Kyiv with one of the worst bombardments since it invaded in February 2022, killing at least 10 people in the capital. Prime Minister Mark Carney, the host of the summit, welcomed Zelensky and announced Can$2 billion ($1.47bn) of military support, including drones and helicopters, for Ukraine. "This underscores the importance of standing in total solidarity with Ukraine," Carney told him. "We underscored the importance of using maximum pressure against Russia, who has refused to come to the table," Carney said. Carney also announced a new Can$2.3 billion loan to Ukraine to help rebuild its infrastructure and public systems and joined Britain in tightening sanctions on Russia's so-called shadow fleet of ships used to circumvent international sanctions on its oil sales. Britain said it wanted to ramp up economic pressure to show Russian President Vladimir Putin it was in his interest to end the war. "These sanctions strike right at the heart of Putin's war machine, choking off his ability to continue his barbaric war in Ukraine," Prime Minister Keir Starmer said in a statement. US lawmakers have also drafted a package of new sanctions on Russia but Trump has been hesitant, saying he wants to preserve relations with Putin, whom he spoke to by telephone on the eve of the G7 summit. Trump infamously berated Zelensky in the Oval Office on February 28, saying he was ungrateful for US aid, but has since voiced disappointment that Putin has rebuffed a US proposal for at least a temporary ceasefire. Zelensky, his voice choked with emotion, told Carney that the latest Russian attack was a "big tragedy" for Ukrainian families and it showed the need for allies' support -- and made clear that he still backed Trump-led calls for negotiations. "It's important for our soldiers to be strong in the battlefield -- to stay strong until Russia will be ready for the peace negotiations," Zelensky said next to Carney. "We are ready for the peace negotiation -- unconditional ceasefire. For this we need pressure." European Commission President Ursula von der Leyen told reporters that despite the attention to the Middle East crisis, "our focus on Ukraine will also persist and stay strong." The G7 -- Britain, Canada, France, Germany, Italy, Japan and the United States -- was holding its first summit since the return to power of Trump, who is fond of assailing allies when they cross him. Trump appeared in good spirits during his abbreviated visit, with no public dust-ups. "Obviously with Trump gone the discussions might be a bit smoother, but they also have less impact with the most powerful nation not there," a diplomat from a G7 nation said on condition of anonymity. Treasury Secretary Scott Bessent remained to represent the United States at the summit, where discussions have also focused heavily on Trump's attempts to radically overhaul the world's trading system. Trump has vowed to slap sweeping tariffs on friends and foes alike on July 9, although he has postponed once. The US president, speaking to reporters on his way back from the summit, complained that the European Union was not yet offering a "fair deal" on trade. "We're either going to make a good deal or they'll just pay whatever we say they will pay," he said. Von der Leyen said she still hoped for a negotiated solution and that talks were "intense and demanding." Trump's negotiators have already sealed a deal with Britain and, outside of the G7, reached an agreement to lower tariffs with rival China. Japanese Prime Minister Shigeru Ishiba said he had "frank" discussions with Trump on Monday but made clear the importance of automobile exports to the world's second-largest developed economy. "As there are still some points where both sides disagree, we have not reached an agreement on the package as a whole," Ishiba told reporters. Japanese Prime Minister Shigeru Ishiba and French President Emmanuel Macron arrive for a working session on Ukraine during the Group of Seven summit in Kananaskis, Alberta, Canada AFP
