European officials are currently discussing the possibility of reinstating Russian gas sales to the EU as part of a potential peace settlement regarding the conflict in Ukraine. Proponents of resuming Russian gas imports argue that it could lower energy prices across Europe, prompt negotiations with Moscow, and incentivize both parties to adhere to a ceasefire.
However, this suggestion has been met with strong opposition from Ukraine’s key allies within the EU. Some German and Hungarian officials have expressed support for the idea, seeing it as a means to alleviate energy costs, which has resulted in pressure from larger member states concerned about soaring prices.
Reopening gas exports from Russia could provide a significant financial boost to Moscow, which previously supplied around 40 percent of the EU’s gas before the conflict, with Germany being the primary consumer. Discussions about the war’s resolution have been prompted by calls from former U.S. President Donald Trump for a quick end to hostilities, which has led to deliberations among Western nations about negotiating terms with Russia. Trump has also warned the EU about potential tariffs unless they increase their imports of more expensive liquefied natural gas from the U.S.
The prospect of renewing gas imports from Russia has provoked frustration among officials in Brussels and Eastern European countries that have made efforts to reduce their reliance on Russian energy. One official termed the notion “madness,” highlighting the controversy over even considering such options.
Ukrainian President Volodymyr Zelenskyy emphasized the importance of ending the active conflict, advocating for diplomatic solutions to minimize casualties. His office did not provide a comment on the discussions regarding the resumption of Russian gas purchases.
The renewed dialogue about gas sales has generated concern among U.S. LNG exporters who are looking to establish long-term contracts with European firms, fearing that a revival of pipeline transit could make their offerings less competitive. To address these concerns, a top energy official from the European Commission is currently in the U.S. engaging with LNG exporters to discuss future supply agreements.
The EU aims to eliminate its dependence on Russian fossil fuels by 2027, with plans to be presented by the energy commissioner next March. Nevertheless, the economic challenges facing heavy industries in the EU are driving the urgency to seek more affordable energy sources. Currently, the cost of gas in Europe is significantly higher than in the U.S.
As of 2024, Russian gas accounted for around 10 percent of total EU supply but has since declined due to the expiration of a transit contract allowing gas to flow through Ukraine. The remaining source of Russian gas is the TurkStream pipeline, primarily supplying Hungary, while Budapest and Slovakia have been advocating for EU pressures on Ukraine to resume gas transit.
Ultimately, the overarching goal remains for all parties to achieve lower energy costs.
photo credit: www.ft.com
