Europe’s Bold Move to Ban Russian Oil and Gas by 2028
Explore how the EU’s decisive plan to phase out Russian fossil fuels by 2028 reshapes energy markets, challenges old dependencies, and signals a new era in European energy security.
Key Takeaways
- EU plans to ban Russian oil and gas imports by 2028
- No new Russian gas contracts allowed from 2025
- Hungary and Slovakia oppose but cannot block the ban
- EU reduced Russian gas imports from 45% in 2021 to 19% in 2023
- Austria suggests reconsidering imports if Ukraine peace is achieved
Europe is steering its energy ship away from Russian oil and gas, marking a historic pivot in response to Moscow’s invasion of Ukraine. The European Commission has unveiled a legislative proposal aiming to phase out all Russian fossil fuel imports by 2028, a move that echoes the bloc’s determination to end energy blackmail. This plan bans new Russian gas contracts starting next year and requires existing short-term agreements to end by 2026, with long-term deals outlawed by 2028. Despite resistance from Hungary, Slovakia, and Austria, the proposal is designed to pass with a qualified majority, sidestepping the need for unanimity. This article unpacks the EU’s bold strategy, the geopolitical tensions it stirs, and what it means for Europe’s energy future.
Phasing Out Russian Energy
Imagine Europe’s energy landscape as a vast river slowly diverting its course away from a once dominant source—Russian oil and gas. The European Commission’s recent proposal aims to dry up this river by 2028, banning all imports of Russian fossil fuels. Starting next year, no new contracts for Russian natural gas—whether piped or shipped as LNG—will be allowed. Existing short-term contracts must end by 2026, and long-term agreements will be outlawed by the end of 2027. This phased approach reflects a strategic balance: cutting dependence while managing supply shocks.
This isn’t just about energy; it’s about breaking free from a weaponized relationship. European Commission President Ursula von der Leyen called Russia’s energy tactics “blackmail,” emphasizing the need to “turn off the tap” for good. The proposal also blocks Russian-owned companies from securing long-term LNG terminal services, ensuring Europe’s infrastructure supports alternative suppliers. It’s a bold blueprint that signals Europe’s intent to reclaim control over its energy destiny.
Navigating Political Resistance
Not everyone in the EU is cheering this energy divorce. Hungary and Slovakia, still reliant on Russian crude oil via pipelines like the Soviet-era Druzhba, have voiced sharp criticism. Hungary’s foreign minister warned of utility bills potentially quadrupling, painting a dramatic picture of economic pain. Austria, while condemning Russia’s invasion, suggested the EU should keep options open to resume Russian gas imports if peace is achieved in Ukraine. This pragmatic stance sparked pushback from activists who see it as ignoring the human cost of war.
Yet, the EU’s legislative design cleverly sidesteps these roadblocks. By framing the ban under trade and energy laws rather than sanctions, the proposal requires only a qualified majority—over half the member states representing 65% of the population—to pass. This means Hungary and Slovakia cannot single-handedly veto the plan. It’s a political chess move ensuring that energy security and unity trump individual dissent, reflecting the bloc’s resolve to move forward despite internal tensions.
Cutting Dependence: The Data Speaks
Numbers tell a compelling story of Europe’s energy transformation. Before Russia’s full-scale invasion of Ukraine in 2022, Russian gas accounted for roughly 45% of the EU’s imports. By 2023, that share plunged to 19%, a dramatic drop reflecting swift policy shifts and market adaptations. Oil imports from Russia also nosedived—from 27% at the start of 2022 to just 3% in 2024. These figures underscore Europe’s rapid pivot away from a supplier once deemed indispensable.
However, the journey hasn’t been without contradictions. While pipeline gas imports from Russia have fallen, Europe bought record amounts of Russian LNG in 2024, raising eyebrows about the bloc’s commitment to its own climate and geopolitical goals. The new proposal aims to close these loopholes by banning Russian companies from accessing EU LNG terminals for long-term contracts, ensuring that terminal capacity supports alternative sources. It’s a data-driven push to align Europe’s energy reality with its strategic ambitions.
Sanctions and Price Caps
Europe’s energy strategy isn’t limited to import bans; it’s also about squeezing Russia’s revenue streams. The EU unveiled its 18th sanctions package since the invasion, lowering the price cap on Russian oil exports from $60 to $45 per barrel. This move aims to curb Moscow’s oil profits without disrupting global markets. Additionally, the sanctions introduce a full transaction ban on Russian banks and financial institutions in third countries that help Russia bypass existing sanctions.
European Commission President von der Leyen framed these measures bluntly: “Strength is the only language that Russia will understand.” Yet, the package requires unanimous approval from all 27 EU member states, a hurdle given Hungary and Slovakia’s previous reservations. This dynamic highlights the delicate balance between collective action and national interests within the EU’s complex political fabric.
Looking Beyond the Ban
The EU’s energy pivot is not just a reaction to war but a long-term strategy to secure its energy future. EU Energy Commissioner Dan Jørgensen emphasized that the ban on Russian gas imports will stand regardless of whether peace is achieved in Ukraine, citing Russia’s history of weaponizing energy supplies in 2006, 2009, 2014, and 2021. This stance signals a fundamental shift: Russia is no longer a trusted trading partner.
Yet, Austria’s call to keep options open post-war reflects the pragmatic challenges of energy security. The EU must balance moral imperatives with economic realities, ensuring reliable and cost-effective energy supplies. As the bloc phases out Russian fossil fuels, it faces the task of diversifying sources, boosting renewables, and managing costs. The road ahead is complex, but Europe’s commitment to ending its Russian energy era is clear and resolute.
Long Story Short
Europe’s decisive march to sever its energy ties with Russia is more than a policy shift—it’s a statement of resilience and sovereignty. By targeting a complete phase-out of Russian oil and gas by 2028, the EU is rewriting the rules of energy dependence forged over decades. While Hungary and Slovakia’s objections highlight the complexities within the bloc, the reinforced majority voting mechanism ensures progress. Austria’s nuanced stance reminds us that peace could reshape energy calculations, but the European Commission’s firm rejection of any return to Russian gas underscores a hard-earned lesson: energy is power, and trust is fragile. For investors, policymakers, and citizens alike, this transition signals a new chapter—one where energy security, geopolitical strategy, and climate goals intertwine. The road ahead demands innovation, solidarity, and vigilance, but the era of Russian fossil fuels in Europe is drawing to a close.