Russian gas imports on the rise again despite EU efforts
According to a report by the European Commission, the share of Russian gas in EU imports, which significantly dropped in the last two years, is rising again this year. Russian supplies are being replaced by gas from Norway and the USA.
The report on the state of the energy union shows how the European Union has dealt with energy sector challenges during the current term of the European Commission. A significant portion of the document is dedicated to systematically reducing the Union's dependency on fossil fuel supplies from Russia.
Divesting from Russia in progress
EU Energy Commissioner Kadri Simson highlighted during the conference that previously, the EU imported 5,297 billion cubic feet of gas annually from Russia, and now it is approximately 1,766 billion cubic feet. The European Commission is confident that it is possible to completely cease buying Russian gas without weakening Europe's energy security.
Our dependency on Russia fell from 45% in 2021 to 15% last year, emphasized the EU politician.
However, the report indicates that the share of Russian gas in EU imports from January to June 2024 was 18%, which is an increase compared to the whole of 2023.
Trend change in 2024: why is more gas flowing from Russia?
When asked about the reasons for this increase and whether she treats it as a personal failure, Kadri Simson replied that gas from Russia has not yet been subjected to full sanctions. She reminded that some landlocked member states still receive supplies from Russia via pipelines. She also added that member states have tools to limit the access of ships with Russian LNG to the EU market.
The European Commission report also emphasizes that Russia's revenue from pipeline and LNG gas sales to the EU has dropped by over 70% since the crisis in 2022.
Simson also informed that the EU is prepared to halt the transit of gas from Russia through the Ukrainian transmission system after the current contract expires in December.
Together with the member states, we have prepared to end the gas transit agreement through Ukraine. We began preparations two years ago. The EU is ready to function without this Russian gas flowing through the Ukrainian transit route, she said.
Norway, USA, and natural renewable sources
Russian gas is gradually being replaced by supplies from Norway and the USA. These countries have become the largest suppliers of blue fuel to the EU, providing 34% and 18% of the gas imports to the European Union in the first half of 2024, respectively.
One of the key conclusions of the report is also a record increase in energy produced from renewable sources. In the first half of this year, half of the electricity in the EU came from "green" sources. Wind energy surpassed gas, becoming the second-largest source of electricity in the Union, after nuclear energy.
Still far from reaching green goals
The report's authors point out that further improvements are needed to achieve the emission reduction goals by 2030, including speeding up building renovations and solving the problem of high energy prices. According to the European Commission, this is crucial for improving the competitiveness of the EU industry and accelerating investments.
The report reminded that all member states must present updated national plans on energy and climate as soon as possible to ensure the collective achievement of energy and climate goals for 2030.
Simson said that when discussing the progress and challenges for EU energy, the difficult situation in Ukraine cannot be forgotten.
Due to the ongoing Russian attacks on its energy infrastructure, the country has lost nearly half of its generation capacity. The EU Commissioner said that if the EU does not increase support, Ukrainians will spend the coming months "in cold and darkness."
The Energy Commissioner emphasized that the European Commission, member states, and other donors have mobilized around CAD 731 million for repairs of damaged installations, decentralized gas production and renewable energy, and emergency power for civilian infrastructure. She also noted that the Commission is ready to do more and increase its contribution to these efforts.
She added that all these actions must be intensified as winter approaches to avoid the worst, and supporting Ukraine during the winter will remain her priority in the final months of her term as Energy Commissioner.
