Tuesday, 02 January 2024 12:17 GMT

EU members agree to bar transit of Russian gas


(MENAFN) The European Union has formally agreed to ban the transit of Russian natural gas through its member states’ territories, marking a significant step in the bloc’s long-term plan to eliminate its reliance on Russian energy supplies. The decision, announced by the European Council on Monday, underscores Brussels’ determination to diversify its energy sources following years of geopolitical tension with Moscow.

Under the new measures, the signing of any new import contracts for Russian gas will be strictly prohibited across the EU beginning January 1, 2026, the Council said in an official statement. The move effectively ends decades of energy cooperation that once made Russia the bloc’s largest gas supplier.

For existing agreements, EU leaders have approved a phased transition period to help member states adjust. Short-term contracts concluded before June 17, 2025, will be allowed to continue until June 17, 2026, while longer-term contracts may operate until January 1, 2028, the statement explained.

Despite the sweeping ban, the new regulations include exceptions designed to protect certain economies from sudden disruption. The Council emphasized that “specific flexibilities for landlocked member states affected by recent changes in supply routes” will remain in place, allowing them to amend or adapt their current arrangements with Russia to avoid energy shortages.

The decision comes as Europe continues to grapple with the fallout from the sharp reduction of Russian energy flows following the outbreak of the conflict in Ukraine in 2022. Since then, EU nations have scrambled to secure alternative sources, turning to liquefied natural gas (LNG) imports from the United States, Qatar, and Norway, as well as expanding renewable energy capacity.

However, the bloc’s plan has not been without internal resistance. Several member states remain heavily dependent on Russian gas delivered through pipelines that cross their borders, and they argue that the EU’s rapid decoupling poses significant economic risks.

Hungary, in particular, has been one of the most vocal critics of the EU’s energy sanctions. Hungarian Foreign Minister Peter Szijjarto, who attended the Russian Energy Week forum in Moscow last week, reaffirmed that Budapest would not comply with demands to abandon Russian energy supplies. He stressed that his country “will not be able to ensure the necessary fuel supplies” without gas and oil from Russia.

Slovakia’s Prime Minister Robert Fico has also voiced strong opposition, warning that the bloc’s approach could backfire economically. Earlier this month, he argued that by attempting to cut itself off from Russian energy, the EU is “shooting ourselves in the knee.” He added that he intends to continue pressing Brussels “to convince them that it is a senseless ideological step.”

Energy analysts note that while the new transit ban is symbolically significant, its immediate impact may be limited since Russian gas exports to Europe have already dropped dramatically since 2022. Still, they caution that the move could increase competition for global LNG supplies, potentially driving up prices and straining energy security in smaller EU economies.

The EU’s broader energy strategy now focuses on accelerating green transition efforts, investing in renewables, and improving cross-border energy interconnections to reduce dependency on any single supplier. Yet, as divisions within the bloc deepen, experts warn that maintaining unity on energy policy will become increasingly difficult as the 2028 cutoff date approaches.

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