The European Union is seeking to block all remaining loopholes to ensure that after the ban comes into effect at the end of 2027, Russian natural gas will not sneak into the EU’s supply system. This move is part of the EU’s efforts to ultimately completely eliminate its reliance on Russian energy supplies.
According to documents seen by Bloomberg, Denmark, currently holding the EU’s rotating presidency, has proposed an amendment requiring importers in each country to provide evidence to their national authorities to prove that the natural gas is not from Russia.
The document specifically expresses concerns about natural gas transported through the TurkStream pipeline, a major pipeline connecting Russia to Southeastern Europe.
Denmark stated in the document that natural gas entering the EU through border or interconnection points between the EU and Russia or Belarus, as well as through the Strandzha 2/Malkoclar (TurkStream) interconnection point, should be presumed to come directly or indirectly from the Russian Federation unless clear evidence is provided to the contrary.
Under the proposed ban, all Russian natural gas supplies based on existing short-term contracts (contracts with a duration of less than one year) will be halted no later than June 17, 2026. Countries like Hungary and Slovakia may be exempted. For existing long-term contract natural gas supplies, the ban will take effect by the end of 2027.
The proposed amendment by the EU’s rotating presidency, Denmark, highlights concerns within the EU that Russian natural gas could still enter the EU market after the ban is implemented. Tracking the exact origin of natural gas is extremely difficult, especially as it often mixes with other natural gases along its way to final consumers.
Denmark hopes that member states can reach an agreement on the ban on Russian natural gas by October. Subsequently, negotiations with the European Parliament will be necessary to finalize the agreement by the end of the year for these regulations to take effect.
Since Russia’s full-scale invasion of Ukraine in February 2022, the EU has imposed wave after wave of sanctions on Russia and has been working to end its decades-long energy relationship with Russia. The long-standing energy dependence has made it challenging for the EU to abruptly terminate its energy supply from Russia.
On July 27, the President of the European Commission, Ursula von der Leyen, reached a trade agreement with US President Trump, with the EU agreeing to purchase $750 billion worth of US energy products. Trump had previously called on the EU to buy more US liquefied natural gas to help offset the trade deficit between the US and the EU.