NextFin news, BRUSSELS — On Friday, September 19, 2025, the European Commission announced plans to ban imports of Russian oil and liquefied natural gas (LNG) by January 1, 2027, accelerating the timeline by one year. The proposal aims to reduce Russia’s revenue from fossil fuel exports, which finance its military operations in Ukraine.
European Commission President Ursula von der Leyen stated in a video message that "it is time to turn off the tap" on Russian LNG. The EU has already imposed sanctions on Russian coal and oil imports but had delayed gas sanctions due to dependency concerns. The new measures seek to end all Russian energy imports, including LNG delivered via pipelines and shipments.
The EU imported nearly 4.5 billion euros worth of Russian LNG in the first half of 2025, accounting for about 20% of its gas imports last year. The ban will affect European households as energy prices and supply stability may be impacted during the transition.
In addition to energy sanctions, the package includes restrictions on Russian banks and financial institutions, bans on cryptocurrency platforms used to circumvent sanctions, and export controls on goods supporting the Russian military-industrial complex. The EU also plans to blacklist over 100 vessels from Russia's so-called "shadow fleet" that evade existing sanctions, preventing them from entering EU ports or receiving insurance and financing from European companies.
EU High Representative for Foreign Affairs Kaja Kallas emphasized the need to deprive Russia of resources to continue its war, stating that the sanctions aim to cut off supplies to the Russian military industry and hold accountable those supporting the conflict.
The sanctions package requires unanimous approval from all 27 EU member states, though the energy import ban could be adopted by majority vote. Some countries, including Hungary and Slovakia, have expressed reservations about the energy sanctions, potentially complicating the approval process.
Von der Leyen also announced plans to propose using frozen Russian assets within the EU to finance Ukraine's military expenditures, signaling further financial measures to support Ukraine.
The EU’s move follows the failure of a US peace initiative for Ukraine and ongoing Russian military aggression, including recent air attacks and violations of EU member states' airspace. The sanctions aim to increase pressure on Russia to cease hostilities and engage in diplomatic negotiations.
European households are expected to face challenges as the EU transitions away from Russian energy, with potential increases in energy costs and the need for alternative energy sources. The Commission highlighted efforts to save energy, diversify supplies, and invest in low-carbon alternatives to mitigate the impact.
The proposed sanctions package represents the 19th round of EU punitive measures against Russia since the invasion of Ukraine began, reflecting the bloc’s commitment to curtailing Russia’s war financing and supporting Ukraine’s sovereignty.
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