Brussels: The EU has formally adopted new regulations to phase out the importation of Russian pipeline gas and liquefied natural gas (LNG), following approval by all 27 member states.

According to Anadolu Agency, the newly adopted regulation includes provisions for strict monitoring, diversification of supply, and penalties for any violations, as stated by the Council of the EU.

The regulation outlines a gradual prohibition on the import of Russian gas, set to commence six weeks after the law becomes effective. Existing contracts will be honored during a transition period to mitigate market disruption and prevent price shocks. A complete ban on LNG imports is scheduled to begin in early 2027, with the prohibition on pipeline gas imports set for autumn 2027.

EU countries are required to verify the origin of gas before it is allowed entry into the bloc. Companies must notify national authorities and the European Commission regarding any remaining contracts involving Russian gas. Member states have been tasked to submit national plans by March 1, 2026, detailing how they will diversify gas supplies and address potential risks associated with replacing Russian imports. Countries that still import Russian oil must also prepare diversification strategies.

The regulation imposes significant penalties for non-compliance, including fines of at least £2.5 million (nearly $3 million) for individuals and £40 million ($47.5 million) for companies, or up to 3.5% of a firm's global annual turnover. In cases where energy security is severely threatened, the European Commission has the authority to suspend the ban for a period of up to four weeks.

Furthermore, the commission is expected to propose legislation to phase out Russian oil imports by the end of 2027.