Phasing Out Russian Oil and Gas: Europe’s Major Step Amid Ukraine Conflict

Market News

Before the Ukraine war, Europe depended heavily on Russian oil and gas. Russia was the main energy provider for the EU. But that all changed in early 2022. When Russia invaded Ukraine, the energy ties became a major risk.

We suddenly saw how dangerous it was to rely on one country for fuel, especially during a war. Russia cut supplies. Prices shot up. Homes and factories across Europe were affected. That’s when Europe decided to act fast.

Now, the continent is working to end its use of Russian oil and gas. This move is not just about energy. It’s about safety, politics, and the future.

Let’s examine how Europe is making this shift, the challenges it faces, and what this means for the global energy world.

Europe’s Past Dependence

Russia used to provide nearly 45% of Europe’s natural gas before the conflict began. Countries like Germany, Hungary, and Italy were the most dependent. Pipelines like Nord Stream and TurkStream carried fuel directly into Europe. These long-term contracts kept Russia as Europe’s main energy partner.

The Ukraine Wake-Up Call

In February 2022, Russia invaded Ukraine. Shortly after, Russia reduced its gas supplies to Europe. Prices spiked and supply fell. Suddenly, using Russian fuel became a major risk. Governments realized they needed new energy routes and fast.

EU Policies & Timelines

In May 2025, the European Commission proposed a law to stop new Russian gas deals by Jan 1, 2026, short-term contracts by June 17, 2026, and end all gas imports by Dec 31, 2027. A  similar plan targets oil;  countries must submit phase-out plans by 2027.

Diversifying Energy Supply

Europe is bringing in more LNG. It’s buying from the U.S., Qatar, Norway, Azerbaijan, and Algeria. It also uses more renewable energy, cuts demand, and fills storage to 43% by May 2025, even without Russian gas.

Renewable Energy Push

Through the REPowerEU plan, Europe plans to increase wind and solar power by two times and cut energy use by over 11% by 2030. They’re building heat pumps and green hydrogen projects. This leap supports energy security and climate goals.

Global Energy Impact

With Europe leaving Russian markets, Russia shifted to Asia. Some pipelines remain open, like TurkStream.Russia is also replacing lost gas via LNG exports to India. Meanwhile, global energy trade is changing fast.

Europe’s Big Challenges

Not all EU members agree. Hungary and Slovakia oppose the ban. They want to keep using Russian energy. Some contracts may end early, so legal tools like “force majeure” can help. Still, price spikes and winter supply issues are real concerns.

Russia’s Response

As Europe leaves, Russia redeploys gas flows. TurkStream is back, and LNG exports to new markets like India are rising. Ukraine also halted transit through its territory in January 2025, cutting Russia’s access to Europe. Russia shifts fuel to Asia instead.

Long-Term Outlook

We expect the EU will end all Russian fuel imports by 2027, with gas and oil bans. It also plans to reduce reliance on Russian nuclear fuel, though that could take longer. Green energy expansion and a slower gas demand (down 7% by 2030) will ease the change.

Conclusion

Europe’s move to ditch Russian oil and gas is historic. It’s about more than bulbs—it’s about energy security, geopolitics, and climate. Despite disagreements, the shift is real. We’re entering a new era: one built on resilience and clean energy.

FAQS

Who is buying natural gas from Russia?

Countries like China, India, and Turkey now buy a lot of Russia’s natural gas. Russia sends gas by pipeline and ships it as LNG to these new buyers.

How did Europe survive without Russian gas?

Europe filled gas storage early, cut energy use, and bought more gas from the U.S., Norway, and others. It also used more wind, solar, and nuclear power.

Where does Europe get its oil?

Europe now gets oil from the U.S., Norway, the Middle East, and West Africa. These suppliers helped Europe replace Russian oil after the Ukraine war began.

Disclaimer:

This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.