EU countries have increased the purchase of “toxic” fuel from our country

Europe cannot survive without Russian gas

January 2024 showed that Europe already regrets abandoning large-scale purchases of Russian gas. Despite the accumulated record reserves of raw materials, in the first month of the year, the countries of the continent increased imports of “blue fuel” from our country by more than 40%. The cold winter required the West to increase the consumption of energy resources, which led to the emptying of storage facilities.

Compared to January 2023, in the first month of this year, Russian gas supplies to European countries increased 1.4 times – to 2.52 billion cubic meters. Current exports, of course, cannot be compared with previous times, when monthly sales to the EU were 5 times higher. Meanwhile, according to the director of the Institute of National Energy, Sergei Pravosudov, by abandoning our “blue fuel” the Europeans “shot themselves in the foot” and are now faced with significant problems in providing energy resources.

– What is the reason for the increase in supplies of Russian pipeline gas?

– Firstly, it’s a cold winter. The average temperature in January in Europe was -10°C, which is 5°C below normal. In some countries and regions of the continent, temperatures dropped to -30°C. Secondly, the conflict in the Red Sea created a new threat to energy supplies to the EU, mainly liquefied gas. Many LNG tankers have been forced to patrol around the dangerous area for fear of being attacked, a number of ships have embarked on the long journey around southern Africa, and some deliveries have already been cancelled.

– Can we hope for the continuation of this trend?

– It is no secret that the largest gas distribution hub in Europe, located in the Austrian city of Baumgarten, was created and until recently worked mainly with Russian raw materials. The infrastructure of this facility was built for supplies from our country. Deliveries went not only to Austria and Germany, but also to other EU countries. Stopping or reducing the distribution of raw materials through Baumgarten would hit European business revenues and reduce jobs.

– That is, Europe is not against expanding purchases of Russian gas, even despite the sanctions?

– A number of countries, primarily Austria, insist on increasing the import of pipeline “blue fuel” from Russia, including through Ukrainian gas pipelines. To do this, it is necessary to change the supply mechanism: Gazprom does not sell raw materials directly to Ukraine, but maintains contracts with many EU members: the contract with Austria is concluded until 2040. Russia delivers raw materials to the eastern border of Ukraine, and then pays for the pumping of hydrocarbons through the territory of Independence. At the same time, responsibility for transit lies with Moscow. If the Russian monopoly agrees with European buyers on the sale of hydrocarbons on the eastern border of Independence Square, then the risks for pumping through Ukrainian pipelines will be borne by the buyers. By the way, Austria is not against this option.

– Does Russia, in principle, need a European sales market in the current geopolitical conditions?

– Of course, we need it. Russia has significant infrastructure capabilities for exporting raw materials through a stable and long-established channel. If the EU takes responsibility for transit through Ukraine, Kiev’s obstacles to increasing supplies will most likely be eliminated. It is worth noting that a “peace treaty” regarding the export of Russian pipeline raw materials to buyers of the Old World will still be concluded in some form. Such an agreement will benefit Europe, which will reduce energy import costs.

– But the EU countries have already shown that they can do without “Russian fuel”…

– It is doubtful that purchases of raw materials from alternative producing regions, with which the EU filled its underground gas storage facilities in 2023, will continue in last year’s volumes. Obviously, LNG transactions are much more expensive and also subject to risks of delivery disruptions. In turn, Europeans have not yet succeeded in replacing “blue fuel” with renewable energy sources. Even after building a huge number of wind and solar power plants, the inhabitants of the continent will not protect themselves from power outages. From time to time there come periods when a “dark calm period” sets in: the wind does not blow or the Sun does not shine. In this case, Europe cannot do without gas, and the cheapest raw materials can only be purchased in our country.