‘quoted business news’
Today, the European Union still relies on Russia for approximately 45% of its gas needs, with some EU countries – such as Italy and Germany – being more vulnerable than others. However, Russia’s ongoing war against Ukraine is forcing Brussels to make difficult choices.
On one hand, the EU and its members are showing a high degree of cohesion and resolve in their expression of solidarity with Ukraine while undermining the Russian economy through significant sanctions. On the other hand, sanctions clearly bear high costs for those who impose them as well, especially in a context where a high level of interdependence exists, such as in the EU-Russia energy relationship.
On March 8th the EU announced its REPowerEU plan to substantially cut Russian gas from the European energy mix before 2030. Yet, with the energy prices skyrocketing during the first days of March, due to the Russian invasion of Ukraine, skepticism emerged regarding the feasibility of achieving independence from Russia. Additionally, fears are widespread concerning the possible dramatic shocks it could have on European consumers and industries. This begs the question of whether the EU can really do without Russian gas – at least by the 2030 timeframe.
