EU Solidifies January 2028 Deadline for Russian Oil and Gas Exit

The European Union has reaffirmed its commitment to completely cease imports of Russian oil and gas by January 1, 2028. This strategic move aims to cut off a significant financial pipeline to Moscow, which officials argue has been funding Russia's ongoing military actions. The decision underscores a broader effort to reduce the bloc's energy dependence on Russia, a dependency that has been a point of contention since the full-scale invasion of Ukraine.

Energy Commissioner Dan Jorgensen stated that the EU's objective is to stop indirectly financing Russia's war, despite recent calls from figures like former U.S. President Donald Trump to accelerate the timeline. Jorgensen confirmed that the EU has not faced pressure from Washington to move the deadline forward, welcoming any U.S. support for the established plan.

While the EU has significantly reduced its reliance on Russian gas—from approximately 45% before the 2022 invasion to about 13% currently—some member states face unique challenges. Hungary and Slovakia, heavily dependent on Russian pipeline supplies, notably through the Druzhba pipeline, continue to import around 200,000-250,000 barrels of Russian oil daily, accounting for roughly 3% of the EU's total oil demand. These nations have expressed concerns about potential energy shortages and price surges resulting from the embargo.

The EU is finalizing legal proposals to formalize the ban, which can be passed by a reinforced majority of member states, circumventing the need for unanimous agreement. This approach addresses the resistance from countries like Hungary and Slovakia. Additionally, the bloc is exploring a substantial energy partnership with the United States, with discussions underway for a potential $250 billion annual energy purchase agreement.

The phase-out includes provisions to block Russian gas rebranded as "transit" fuel, further tightening the sanctions. While the impact on Russia's gas revenues has already been substantial due to reduced volumes, the complete cessation of oil imports is expected to exert further economic pressure, given oil's historical role as a lucrative export for the Kremlin. The EU's systematic approach seeks to balance energy security with its geopolitical objectives.