Background
Following the EU’s existing embargo on Russian crude oil and petroleum products, the European Commission has proposed, and the Council has now agreed in principle, a complementary Regulation designed to end the remaining inflows of Russian natural gas into the Union. The measure gives legal effect to the Commission’s May 2025 Roadmap towards ending Russian energy imports (see our previous client alert) and forms part of the wider REPowerEU strategy, which is distinct from and separate to the EU’s sanctions programme. It will now proceed to negotiations with the European Parliament before formal adoption.
The Regulation establishes a binding timetable for the phase-out of Russian gas imports, while introducing a uniform authorisation system and stricter transparency requirements across Member States. The Council agreed its General Approach by a qualified majority.
The Council’s agreement represents its General Approach under the EU’s legislative procedure. The next step is for the European Parliament to adopt its own position on the proposal. Once both institutions have agreed their respective positions, negotiations (trilogues) between the Council, Parliament, and Commission will take place to settle the final text. The Regulation will then be formally adopted and published in the Official Journal of the European Union.
Staggered prohibition on Russian gas imports
Under Article 3, the Regulation introduces a comprehensive ban on the import of natural gas in gaseous form via pipelines originating in or exported from Russia, as well as on liquefied natural gas (LNG) produced from Russian feedstock or exported directly or indirectly from Russia, including when such gas forms part of a mixture.
The prohibition is subject to limited transitional exemptions under Article 4. Short-term supply contracts concluded before 17 June 2025 (which, as defined, excludes “a natural gas derivative”) may continue until 17 June 2026, while long-term contracts (which, as defined, excludes “a natural gas derivative”), including those serving landlocked Member States, may remain in force until 1 January 2028. To qualify, the contracts must not have been amended other than to reduce volumes or prices, or to make necessary procedural adjustments required by law.
During this transitional period, import volumes cannot exceed the quantities originally contracted, and any amendment must be notified to the competent authority. This structure effectively introduces a “wind-down” period, giving companies time to manage contractual exposure and compliance.
Authorisation and due diligence requirements
Any importer seeking to rely on an exemption must obtain prior authorisation from the relevant national authority pursuant to Article 7. The application must include full details of the contract date, duration, quantities, flexibility provisions, delivery points, and nominated volumes, as well as the identity of contracting parties and their Economic Operator Registration and Identification numbers.
Where LNG mixtures are involved, importers must provide supporting documentation demonstrating the proportion of Russian versus non-Russian gas and describing the process by which the gas was mixed. Authorities will assess whether the contract qualifies for an exemption under Article 4 and may refuse customs clearance where the evidence of origin is insufficient.
A safe-harbour presumption applies to imports from countries that exported more than five billion cubic metres of gas to the EU in 2024 and that either prohibit Russian imports themselves or lack infrastructure capable of importing Russian gas. Such a presumption may nevertheless be rebutted by the Commission or ACER if new evidence arises.
The Council’s General Approach deletes Articles 5, 6, and 8 of the Commission’s June 2025 proposal, which had separately prohibited the provision of long-term LNG terminal services to Russian entities (Article 5) and allowed a transition period for pre-existing terminal-service contracts until 1 January 2028 (Article 6), supported by an information-sharing duty on terminal operators (Article 8). Those provisions have not been re-inserted elsewhere in the Council text. Instead, the Council narrowed the Regulation’s focus to the import prohibition in Articles 3 and 4 and the accompanying authorisation and monitoring framework in Articles 7, 9, and 10. LNG cargoes of Russian origin and mixed cargoes containing Russian gas remain covered by the import ban, but there is no standalone restriction on offering or providing LNG-terminal services.
Monitoring, cooperation, and enforcement
Articles 9 and 10 impose enhanced coordination requirements between authorising bodies, customs authorities, national regulators, ACER, and the Commission. Member States must share information each month concerning contracts, volumes, delivery points, and any transshipments through intermediary countries such as Turkey or Belarus. They must also maintain centralised databases capable of cross-checking declarations and identifying discrepancies.
ACER is tasked with publishing annual reports, due by 31 August 2026 and 31 August 2027, summarising import data, progress on diversification, and remaining exposure to Russian gas. The Commission and ACER are authorised to access relevant contractual information, excluding price terms, where necessary to verify compliance.
The Regulation underscores that confidentiality and professional secrecy obligations will apply to all commercially sensitive information exchanged between authorities.
National diversification plans
Chapter IV requires each Member State to submit a national diversification plan for gas by 1 March 2026. Each plan must quantify current import volumes linked to Russia and describe the measures and timelines by which these supplies will be replaced. The plans are expected to detail renewable alternatives such as biogas, hydrogen, and electrification, together with any technical or regulatory barriers that may delay diversification.
The Commission will review the plans within three months of submission, issue recommendations, and require updates if it considers that a Member State remains at risk of continued dependence. Progress will be monitored through the existing Gas and Oil Coordination Groups established under Regulations (EU) 2017/1938 and 2009/119/EC.
Review, suspension, and final provisions
Pursuant to Article 15, the Commission will continuously monitor the Union’s exposure to Russian gas imports and may temporarily suspend the application of the import prohibitions where a sudden and significant disruption to security of supply arises. The Regulation enters into force the day after its publication in the Official Journal of the European Union, with the substantive prohibitions taking effect six weeks thereafter.
Client Alert 2025-263
