First political hurdle cleared for EU's plan on phase-out of Russian energy

EU diplomats reported that the ambassadors of European Union countries agreed on Wednesday to push ahead with the plan to stop Russian oil and natural gas imports by the year 2028. This agreement cleared the first political hurdle for the law before it is voted on later this month.

The EU is currently negotiating proposals that would phase out Russian gas and oil by January 2028. This is an attempt to deny the Kremlin any revenue to fund their war in Ukraine.

Three diplomats said that in a closed door meeting held on Wednesday, EU Ambassadors agreed to send the proposed law on to their ministers on October 20 for approval.

Nearly all EU COUNTRIES SIGNALISED SUPPORT

Diplomats say that nearly all EU nations have expressed support for the plan, which suggests it will pass easily - despite criticisms from Hungary and Slovakia whose governments wish to maintain close relations with Russia.

Technical changes are currently being discussed ahead of the vote on October 20.

The question of whether or not liquefied gas exports from Europe should be pre-authorized before delivery, and their origin must also be checked by customs officials when they arrive in EU ports to ensure that they are not Russian is still open.

France and Italy support the plan but would prefer that shipments be either pre-authorized - if the authorities could enforce it quickly enough - or checked upon arrival by the authorities to enforce the ban.

The Italian EU representative and the French energy ministry have not responded to our requests for comments.

The law, if approved, would eliminate Europe's decades long reliance on Russian oil. It would phase out Russian gas imports starting in January 2026. Short-term contracts will be terminated from June 2026. Long-term contracts will begin January 2028.

Hungary, France, and Belgium are still importing Russian gas. This accounts for only 12% of EU imports of gas, down from 45% prior to Russia's full-scale invasion in Ukraine 2022.

The law will oblige Hungary and Slovakia, the two countries that still import Russian oil, to develop national plans by 2028 to stop these imports.

Plans must be approved by a "qualified majority" - that is, at least 55% - of EU members states. After that, EU member states and legislators will negotiate the final legislation.

Separately the EU is also in negotiations for a new set of sanctions against Russia, to ban LNG an year earlier, that is, January 2027. (Reporting from Kate Abnett. America Hernandez contributed additional reporting. Mark Potter (Editor)

(source: Reuters)