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EU faces divisions over restarting Russian gas flows as energy prices surge

30 January 2025 12:09

European officials are currently debating whether to resume Russian pipeline gas sales to the EU as part of a potential settlement to end the war in Ukraine, according to sources familiar with the discussions.

Proponents of resuming Russian gas imports argue that it could lower energy prices in Europe, bring Moscow to the negotiating table, and provide both sides with a reason to implement and sustain a ceasefire, Caliber.Az reports citing the analysis by Financial Times.

However, the idea of reopening Russian gas flows has already sparked strong opposition from Ukraine’s closest allies in the EU.

Three officials briefed on the talks noted that some German and Hungarian officials, supported by other capitals, have backed the idea, seeing it as a way to reduce European energy costs. "There is pressure from some big member states on energy prices, and this is one way to bring those down, of course," said one official.

Resuming gas exports to Europe would significantly boost Moscow’s revenues. Prior to the war, Russian pipeline gas accounted for about 40% of the EU's total energy supplies, with Germany being the largest importer.

The debate over resuming Russian gas sales has intensified amid US President Donald Trump’s calls for an end to the war “soon,” prompting discussions among Western capitals on what elements would be needed for a lasting agreement with Moscow. Trump has also threatened the EU with tariffs unless it buys more expensive liquefied natural gas (LNG) from the US.

The idea of restarting Russian gas flows has infuriated Brussels officials and diplomats from Eastern European countries, many of whom have spent the past few years working to reduce the EU's reliance on Russian energy. "It’s madness," said one official. "How stupid could we be to even think about that as an option?"

Ukrainian President Volodymyr Zelenskyy emphasized the importance of ending the "hot phase" of the war and said diplomatic solutions would be preferable to reduce casualties and losses. His office did not respond to a request for comment on the discussions regarding Russian gas purchases.

The renewed debate has also unsettled some US LNG exporters who are seeking long-term supply deals with European companies. They fear that any resumption of Russian pipeline gas could make their products less competitive, according to two officials. Ditte Juul Jørgensen, a top European Commission energy official, is currently in the US meeting with LNG exporters to discuss potential long-term supplies.

The EU's target is to eliminate all Russian fossil fuels from its energy system by 2027, with Energy Commissioner Dan Jørgensen set to present a plan for achieving this goal in March. However, the economic challenges faced by the EU’s heavy industries have increased the need for cheaper energy sources. Gas prices in Europe are typically three to four times higher than in the US.

"In the end, everybody wants lower energy costs," said a senior EU official.

By Tamilla Hasanova

Caliber.Az
Views: 286

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