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Home World News

EU Considers Resuming Russian Gas Imports in Potential Ukraine Agreement

by bullnews
January 30, 2025
in World News
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Currently, there’s quite a bit of discussion among European officials about whether it’s time to consider restarting the sale of Russian pipeline gas to the EU, potentially as part of a broader resolution to end the ongoing conflict in Ukraine, according to insiders familiar with the talks. Proponents of this move argue that importing Russian gas again could help reduce Europe’s steep energy costs. They also believe this action might entice Moscow back to negotiations and help sustain a ceasefire between the two sides.

However, even tentatively discussing the possibility of reopening Russian gas flows into Europe is already causing a stir, especially among Ukraine’s key allies within the EU. Three officials briefed on the matter noted that some German and Hungarian authorities, along with supporters from other European capitals, have backed the idea, seeing it as a means to alleviate the financial burden of high energy prices in Europe.

“There’s some pressure coming from larger member states due to energy prices, and this seems like an obvious way to mitigate those costs,” one official observed.

Allowing Russian gas back into Europe would indeed mean a significant influx of revenue for Moscow. Prior to the conflict, about 40% of the EU’s gas supplies were piped in from Russia, with Germany being the biggest consumer.

Donald Trump’s demand for a swift end to the war has propelled discussions in Western capitals on what will be needed to forge a lasting peace with Moscow. The US president has also warned the EU about imposing tariffs unless it increases its purchase of American liquefied natural gas, which comes with a heftier price tag compared to pipeline gas.

The mere suggestion of resuming pipeline sales from Russia has riled officials in Brussels, and diplomats from various eastern European nations—a region that has been striving to cut back on Russian energy imports for the last three years—are particularly displeased. “It’s absolutely ludicrous,” exclaimed one official. “What are we thinking to even entertain such an idea?”

On Wednesday, Ukrainian President Volodymyr Zelenskyy emphasized the importance of halting active conflict. “Diplomatic solutions are best,” he noted, pointing to the reduced casualties and losses such approaches typically bring. His office, however, declined to comment on the potential resurgence of Russian gas purchases.

This rekindled conversation around gas sales has created unease among some US liquefied natural gas exporters, who worry that a resumption of Ukrainian transit would damage the competitiveness of their offerings, according to two officials involved.

Ditte Juul Jørgensen, a top energy official from the European Commission, is in the US meeting with LNG exporters this week to discuss potential long-term supply arrangements.

The EU has committed to eliminating Russian fossil fuels from its energy equation by 2027. In March, EU energy commissioner Dan Jørgensen is expected to unveil a strategy for achieving this objective.

Yet, pressing economic challenges facing the EU’s major industries are intensifying the urgency for affordable energy solutions. Typically, gas prices in Europe run three to four times higher than in the US.

Russian pipeline gas accounted for around 10% of Europe’s supply in 2024, but this figure has dwindled since the expiration of a transit deal that allowed gas to flow through Ukraine into the EU as of January.

The TurkStream pipeline, passing through Turkey, remains the sole channel for Russian gas to the EU, supplying Hungary with about 7.5 billion cubic meters of gas. Both Budapest and Slovakia’s pro-Russian administration have been advocating for the EU to nudge Ukraine into reopening gas transit routes.

“At the end of the day, everyone wants lower energy costs,” stated a senior EU official.

Tags: AgreementConsidersgasImportsPotentialResumingRussianUkraine
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