EU faces €1.3 trillion economic hit from cutting Russian energy ties

The European Union has sustained economic losses exceeding €1.3 trillion after giving up Russian energy supplies, Russian business daily Vedomosti has reported, citing its own calculations.

According to the paper, the total losses, including indirect effects, amount to around 2.4% of the EU’s economy, Caliber.Az reports per Russian media. 

The report also states that European citizens collectively lost €1.6 trillion in income during the same period.

Between 2022 and 2024, EU member states are said to have overpaid by €544 billion for energy imports, with much of this revenue benefiting alternative suppliers such as the United States, the United Kingdom, Norway, and countries in the Middle East.

In late January, European Commission President Ursula von der Leyen acknowledged that Western nations had paid “a high price” to achieve independence from Russian fossil fuels. She noted that gas imports from Russia had dropped by approximately 75%.

Von der Leyen admitted that the transition came at a cost, particularly for households and businesses, many of whom faced soaring electricity bills. Some industries, especially in the chemicals and automotive sectors, are now struggling to remain viable, she added.

To recall, the European Union has significantly reduced its dependence on Russian fossil fuels in response to Russia’s invasion of Ukraine and its subsequent use of energy as a geopolitical tool.

By 2024, Russia’s share of EU pipeline gas imports had fallen sharply—from more than 40% in 2021 to around 11%. When including both pipeline gas and liquefied natural gas (LNG), Russia accounted for less than 19% of total EU gas imports last year.

This shift has been driven by a surge in LNG imports and a marked drop in overall gas consumption across the bloc. Norway and the United States emerged as the EU’s leading gas suppliers in 2024, with Norway providing over a third of total gas imports. The US alone accounted for nearly 45% of LNG deliveries, more than double its 2021 levels.

Other contributors included Algeria, Qatar, the UK and Azerbaijan. The EU imported over 100 billion cubic metres of LNG in 2024, with France, Spain, Italy, the Netherlands and Belgium topping the list of importers.

Gas remains essential across the EU for electricity generation, residential heating and industry. Approximately 30% of EU households rely on gas for heating. Despite its importance, the EU’s overall demand for gas dropped by more than 19% between 2021 and 2024.

By Aghakazim Guliyev