Borrell: EU got rid of energy dependence on Russia

European countries in a few months got rid of energy dependence on Russia, which was created over the years, said in interview newspaper Diário, EU High Representative for Foreign Affairs and Security Policy Josep Borrell.

The energy development of the Russian Federation, according to Borrell, was financed by Europe, and the path based on the idea that interdependence avoids conflicts is coming to an end.

“Now interdependence is a weapon for conflict, and we are making radical changes: in a few months we have abolished the energy dependence on Russia that we have built up over the years,” he said.

According to Borrell, the EU has already gone through an “extremely stressful phase of rising prices”, and they have returned to pre-war values. The sharp rise in gas prices in August last year was caused by speculative tensions in the markets, the situation in the energy market can no longer be associated with hostilities, the head of EU diplomacy believes.

“We are back with a megawatt-hour of gas at the pre-war price, which was already very high,” Borrell said. He added that he hopes that the European Commission will soon receive a proposal aimed at correcting the situation in the energy sector.

Former head of EU diplomacy declaredthat by the end of 2023, all EU countries, with the possible exception of Hungary, will refuse energy resources from Russia. Borrell added that EU sanctions against Russia would make the country’s economy “pay a heavy price.”

At the same time, the European official pointed to the technological dependence of the EU on China, which is “more than it was energy dependence on Russia.” According to him, “it will not be easy to get rid of it.”

Exchange gas prices in Europe January 17, 2023 for the first time since August 2021 descended below $600 per 1000 cu. m, according to the ICE exchange. Analysts attribute the current long-term decline in gas prices to significant fuel reserves in European underground gas storages (UGS) against the backdrop of warm weather in Europe and the generation of wind farms (WPPs).

In March 2022, spot prices set a new all-time high, approaching $3,900 per 1,000 cubic meters. m. Then the quotes gradually declined, but in August they again switched to a sharp increase, although they could not beat the March record.

On December 19, 2022, the EU countries agreed on a gas price ceiling of 180 euros per 1 MWh, which corresponds to $1,975 per 1,000 cubic meters. m. It will come into force on February 15, 2023. Analysts then noted that setting a ceiling at about $2,000 was “comfortable for the EU”, as it would not lead to the redirection of LNG supplies to other markets and would allow Europeans to successfully compete for free gas volumes.