Vladimir Putin’s gas export industry is set to take a major blow after the publication of new EU plans. On Tuesday (February 3) the bloc published the REPowerEU regulation in its Official Journal, setting out the gradual cessation of Russian gas imports. 

The regulation takes effect from today, with the first contracts to be cancelled from April 25. This comes as part of the EU’s decision to completely withdraw from Russian gas imports by 2027.

The regulations implement several restrictions, including: the banning of short-term contracts for liquefied natural gas (LNG) from April 25, short-term contracts for pipeline gas from June 17, long-term contracts for LNG imports from January 1, 2027 and imports of pipeline gas under long-term contracts from September 30, 2027.

“Published today, the REPowerEU Gas Regulation (EU/2026/261) lays down the legal provisions for the gradual phase-out of imports of natural gas from Russia. This historic decision, adopted at the end of last year, aims to put an end to the EU’s dependence on Russian gas once and for all by 2027,” the European Commission said.

On January 26, EU countries gave final approval to a phased plan to ban imports of Russian gas. The same day, Hungarian Foreign Minister Péter Szijjártó revealed Budapest planned to file a lawsuit with the Court of Justice of the EU (CJEU) as soon as the decision on the REPowerEU plan was published. It later emerged that Slovakia would follow Hungary’s lead and also take legal action against the EU’s ban on energy imports from Russia.

According to European Pravda, EU member states may extend the deadline for pipeline gas to October 31, 2027, if their storage levels are below the required threshold.

As of early 2026, Russian gas still accounts for roughly 13% of EU imports and is worth an estimated €15billion (£13billion). In 2025 alone, Russian gas exports to the EU brought the Kremlin this eyewatering sum. Some estimates suggest that between early 2025 and the end of 2027, the EU could still send another €30 to €40billion (£26-35billion) to Russia for gas and oil imports under long-term contracts before they completely cease.

While Russia has successfully redirected some energy exports to Asia, the loss of the premium European market significantly reduces its budget flexibility. In 2025, oil and gas revenues already fell to a five-year low, dropping 24% to 8.48 trillion rubles (£81billion).

China and India are the primary destinations for Russia’s crude oil, while Turkey leads in oil product purchases, replacing much of the European market lost due to sanctions. The G7 price cap aims to limit Russia’s oil revenue, though the country has found ways to circumvent it, using its “shadow fleet” and redirecting flows.