Trump unveils fresh strategy for Russian energy, as per Von der Leyen's declaration
The European Commission has announced an initiative to speed up the halt of all European oil and gas imports from Russia, marking a significant step in the ongoing efforts to increase economic pressure on Moscow and end Russia's financing of the war in Ukraine.
According to European Commission President Ursula von der Leyen, the Commission will propose accelerating the exit from Russian fossil fuel imports as part of an effort to end Russia's war economy. However, details on the considerations for a faster exit from Russian energy imports have yet to be provided.
In 2024, gas supplies from Russia accounted for nearly 19 percent of all imports in the EU. Large amounts of liquefied natural gas are still being imported from Russia into the EU, posing potential challenges to the EU's objective of ending all Russian fossil fuel imports.
The ongoing imports of large amounts of liquefied natural gas from Russia could potentially hinder the EU's efforts to completely halt all Russian fossil fuel imports. This is particularly true for countries like Hungary and Slovakia, which still import significant amounts of Russian oil and natural gas, mainly through the TurkStream pipeline. In 2024, Hungary's oil dependence on Russia even rose to 86%.
The EU plans a phased exit: banning new Russian gas contracts from January 1, 2026, ending short-term contracts by June 17, 2026, and terminating long-term contracts by the end of 2027, aiming for a complete halt of Russian gas imports by 2028. Oil imports are also planned to stop by the end of 2027.
However, the prospects of success for a EU initiative to end Russian oil and gas imports are unclear due to the reliance of certain countries and the ongoing imports of liquefied natural gas. Turkey, a NATO country, imports large amounts of cheap energy from Russia and has not shown a quick willingness to change this. Turkey's ongoing imports of large amounts of cheap energy from Russia could potentially undermine the effectiveness of the EU's initiative.
The EU-Russia sanctions are intended to increase economic pressure on Russia. In addition to the proposed accelerated exit from Russian fossil fuel imports, the EU Commission is planning to propose a 19th package of EU-Russia sanctions, targeting Russia's banks, energy sector, and the use of cryptocurrencies to circumvent sanctions.
The EU's initiative may face resistance from countries still heavily dependent on Russian energy sources. The halt of European oil and gas imports from Russia is aimed at ending Russia's financing of the war in Ukraine. The Commission's previous plans aim for complete oil import cessation from Russia by the end of 2027. The ongoing conversation between Ursula von der Leyen and US President Donald Trump focused on further steps to increase economic pressure on Russia.
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