Friday, October 24, 2025

#NaturalGas Review $UNG #NG_F - EU Phasing Out Russian Natural Gas

Natural Gas Review
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EU Phasing Out Russian Natural Gas

The EU Council has agreed on its negotiating position for a new regulation to phase out Russian natural gas imports as part of the REPowerEU plan to end dependence on Russian energy. The regulation introduces a legally binding, step-by-step ban on both pipeline and LNG imports from Russia, culminating in a full ban by 1 January 2028.

The Council set 1 January 2026 as the general prohibition date for new imports, allowing existing short-term contracts to continue until June 2026, and long-term contracts until January 2028. Amendments to these contracts are tightly restricted, particularly for landlocked countries.

To enforce the ban, a prior authorization system will apply to all imports, with stricter documentation for Russian gas. Imports from countries meeting certain criteria may be exempt to reduce administrative burden. The regulation also includes mechanisms to monitor gas in transit and prevent circumvention.

Member states must submit national diversification plans, unless they prove they no longer import Russian gas or oil. The Council has strengthened provisions on information sharing and monitoring, and the Commission must review the regulation’s implementation within two years.

The Council will now begin negotiations with the European Parliament to finalize the regulation. Despite declining Russian oil and gas imports since 2022, Russian gas still makes up about 13% of EU imports, highlighting ongoing energy security risks.

Please subscriber the Natural Gas Report to understand when changes is coming and better track the invisible hand. NG will enter a secular bull market without presistent storage deficit.

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