In the night of Tuesday 2 to Wednesday 3 December, the Council of the EU and the European Parliament reached agreement in their third session of political negotiations (‘trilogue’) on the ‘REPowerEU’ regulation for a gradual phase-out of Russian gas by 30 September 2027.
Agence Europe was able to consult a draft agreement, which was still being finalised at a technical level.
While negotiators from both institutions say they are satisfied with the final outcome, some admit that the interinstitutional talks, which began on 6 November, were not as straightforward as expected (see EUROPE 13747/7).
“After the second trilogue, I didn’t hold out much hope that the Presidency of the EU Council would change its position, but there has been significant progress”, welcomed co-rapporteur Inese Vaidere (EPP, Latvian).
In the EU Council, there was irritation by the fact that negotiations were not progressing quickly enough at a technical level. Finally, Lars Aagaard, the Danish Minister for Climate and Energy, representing the rotating Presidency of the Council, said he was “very (...) proud that we have been able to reach an agreement with the European Parliament so quickly”.
Prohibition dates. Under this provisional agreement, all new contracts for the importation of Russian gas (via pipeline and LNG) will be prohibited six weeks after the regulation enters into force.
Short-term supply contracts concluded before 17 June 2025 will be banned from 25 April 2026, in the case of LNG, and from 17 June 2026 for gas transported by pipeline.
The ban on all long-term LNG import contracts will enter into force on 1 January 2027, in line with the 19th EU sanctions package (see EUROPE 13737/6).
Long-term contracts for gas transported by pipeline will finally be prohibited from 30 September 2027, subject to the following condition: Member States must comply with the storage capacity filling targets set out in the Gas Storage Regulation (see EUROPE 13684/34), by no later than 1 November 2027.
According to co-rapporteur Ville Niinistö (Greens/EFA, Finnish), bringing the date forward to 30 September 2027 – rather than 1 January 2028 – would result in Russia losing around €400 million per month.
Diversification plans. Member States are required to submit national diversification plans describing the measures aimed at diversifying their gas supplies. The agreement strengthens the Commission’s monitoring: Member States must inform the institution of the existence of Russian gas supply contracts within one month of the regulation entering into force.
Russian oil. Parliament did not manage to include a ban on Russian oil in the text. However, countries that still import it (Hungary, Slovakia) must also submit a national diversification plan targeting these imports.
In addition, the Commission has undertaken, in a statement, to present a new legislative proposal, “early next year”, targeting the latest Russian oil imports.
“We have to do it as soon as possible and by the end of 2027 at the latest”, stressed the European Commissioner for Energy, Dan Jørgensen, to the press, alongside the President of the European Commission, Ursula von der Leyen, and the Executive Director of the International Energy Agency, Fatih Birol. No mention was made of the expected proposal on Russian nuclear fuel.
Suspension clause. The clause suspending the regulation in the event of a threat to the security of energy supply was ultimately retained, in favour of the Council.
However, the conditions under which the Commission can temporarily lift the import ban have been tightened. This option is available in the event of a state of emergency declared by a Member State for a limited period and for short-term supply contracts.
In addition, the Commission will have to evaluate the implementation of the regulation every two years following its entry into force.
Penalties. The Parliament was pleased to have succeeded in incorporating an article on “maximum” harmonised penalties for breaches of the ban. Member States will be able to choose from three options for targeting the companies concerned: a maximum fine of 3.5% of annual worldwide turnover, €40 million, or 300% of the value of the goods seized.
Prior authorisation process. For the prior authorisation process targeting non-Russian gas, the information required for authorisation must be provided at least five days before entry into EU territory. For gas imported via the Strandzha 1 interconnection point (Bulgaria), this deadline is extended to seven days.
The Commission may update the list of countries exempted from this process, and, if necessary, remove countries, in the case of documented circumvention.
For Russian gas and imports under the transition period, the required information must be submitted at least one month before entry. (Original version in French by Pauline Denys)