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EU split over Russian gas comeback in war talks: FT

  • By Al Mayadeen English
  • Source: Agencies
  • 30 Jan 2025 16:49
  • 2 Shares
3 Min Read

The renewed debate over Russian energy has unsettled US LNG exporters, who are negotiating long-term supply agreements with European companies.

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  • The gas pumping station at Sudzhe, Russia, seen on Jan. 11, 2009. (AP)
    The gas pumping station at Sudzhe, Russia, seen on Jan. 11, 2009 (AP)

The Financial Times on Thursday reported that European officials are debating the possible resumption of Russian pipeline gas sales to the EU as part of a potential deal to end the war in Ukraine.

Supporters argue that restoring Russian gas imports could lower energy prices, encourage Moscow to negotiate a ceasefire, and ensure its implementation. However, even preliminary discussions have already met resistance, particularly from Ukraine's closest allies within the EU.

According to officials familiar with the talks, German and Hungarian representatives have endorsed the idea, with backing from other capitals seeking relief from high energy costs.

Gas Diplomacy

Before the war, Russian pipeline gas accounted for 40% of the EU's supply, with Germany as the largest importer. Restarting these exports would boost Moscow's revenue, undermining efforts by European leaders to phase out Russian fossil fuels.

The discussions align with Donald Trump's push for an expedited end to the war, which has led Western governments to reassess potential settlement terms with Moscow. Trump has also pressured the EU, threatening tariffs unless it increases purchases of American liquefied natural gas (LNG), which remains more expensive than Russian pipeline gas.

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Read more: US energy sanctions could drive fuel prices in Europe up: Szijjarto

The idea of reopening Russian gas flows has sparked outrage among officials in Brussels and Eastern Europe, who have spent the past three years working to curb dependence on Russian energy. One senior EU official criticized the proposal, stating: "It's madness. How stupid could we be to even think about that as an option?"

Ukrainian President Volodymyr Zelensky, addressing the broader issue of negotiations, stated on Wednesday: "Ending the hot phase of the war is critical . . . Diplomatic solutions are preferable — fewer casualties, fewer losses."

Energy Dilemma

The renewed debate over Russian energy has unsettled US LNG exporters, who are negotiating long-term supply agreements with European companies. Officials fear that reviving Ukrainian transit routes for Russian gas could undercut US LNG sales.

Meanwhile, European Commission energy official Ditte Juul Jørgensen is in the US meeting LNG exporters to discuss long-term supply strategies. The EU aims to eliminate Russian fossil fuels by 2027, with Energy Commissioner Dan Jørgensen set to present a roadmap in March.

However, Europe's heavy industries are struggling under high energy costs, increasing pressure on governments to seek cheaper alternatives. European gas prices remain three to four times higher than in the US, making cost reduction an urgent priority.

Read more: Russia ready to supply fuel to EU as West signals for cooperation

In 2024, Russian pipeline gas made up 10% of the EU's total supply, but this has declined sharply since Ukraine's transit contract expired in January. Currently, the TurkStream pipeline via Turkey is the only remaining route for Russian gas, supplying Hungary with 7.5 billion cubic meters annually.

Hungary and Slovakia, both of which maintain closer ties with Moscow than many other EU states, are pushing the bloc to pressure Kiev into resuming transit agreements. A senior EU official summed up the dilemma: "In the end, everybody wants lower energy costs."

  • Russian oil
  • Russian Gas
  • Ukraine
  • Ukraine war
  • European Union

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