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EU countries try to limit ways to circumvent Russian gas ban, draft shows
Published by Global Banking and Finance Review
Posted on September 5, 2025
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By Kate Abnett
BRUSSELS (Reuters) -European Union countries are attempting to seal up ways Russian gas could still flow into Europe after the bloc's phase-out takes effect, a draft of their latest negotiating proposal on the rules, seen by Reuters, showed.
The European Commission in June proposed legislation to phase out EU imports of Russian oil and gas by January 1, 2028, as Brussels seeks to sever its decades-old energy relations with Russia following its 2022 invasion of Ukraine.
EU countries are negotiating the plans, and considering proposals to try to make it harder for companies to re-label Russian gas as having "transited" through Russia after being produced in another country.
"Customs authorities should refuse the import of alleged transit volumes, unless unequivocal evidence can be provided to prove that the gas has been in transit through the Russian Federation and the gas was produced in a country other than the Russian Federation," said the draft of their latest negotiating proposal, dated September 4.
In particular, gas imported through the TurkStream pipeline - which links Russia to Turkey, after which it is transported onwards to EU member Bulgaria - should be presumed to be Russian, and not just gas that has transited through Russia, the draft said.
"The Russian Federation is a major gas exporter and has not played any noticeable role as a gas transit country in the past," it said.
The proposal reflects concern that companies could re-label Russian gas imports to avoid the EU ban. Proving where gas, which may be blended in transit, originates, is notoriously difficult.
A spokesperson for Denmark, which holds the EU's rotating presidency and drafted the document, declined to comment.
EU countries aim to approve the proposals next month. The Russian gas ban requires approval from a reinforced majority of EU countries - meaning Hungary and Slovakia, which have opposed the measure, cannot block it.
Under the proposals, the EU will phase out Russian gas imports under new contracts from January 2026, under existing short-term contracts from June 17, 2026, and under long-term contracts in January 2028.
(Reporting by Kate Abnett; Editing by Alistair Bell)