How the EU ban on Russian gas imports will work

The European Commission released its highly anticipated subsidy framework on 25 June, setting out how EU state aid can be dished out for the next five years. The clean industrial state aid framework, a key plank of decarbonisation goals, covers everything from nuclear, to clean technology manufacturing, to de-risking private investments in energy infrastructure. Perhaps most controversially, it allows public subsidies to go to a fossil fuel, albeit setting a 2040 phase-out date.

Denmark takes over the EU Council presidency on 1 July and is determined to work at full speed to also strike a deal with MEPs on the proposal to phase out Russian gas imports. In an interview with Contexte, Energy and Climate Minister Lars Aagaard says he is 'cautious’ about simplifying energy law through an omnibus package, and worries about allowing too much flexibility on a 2040 EU climate target. Nuclear power is ‘part of the solution’, he says — but he’s sceptical of partisan arguments focused on individual technologies.

Signing new Russian gas contracts and providing long-term services to Russian entities from EU LNG terminals will be prohibited from 1 January 2026 under proposed trade measures, Contexte has learned from several sources familiar with the matter. Short‑term contracts may remain in force until mid‑2026, and long‑term agreements until 1 January 2028. Hungary and Slovakia have signalled they will strongly oppose the regulation.