Russian Energy Influence on Europe
With the Ukrainian conflict unresolved and winter in sight, the EU will not only have the grand task of preparing the continent for the possibility of energy shortages, but also to define its long-term energy goals.
Most East European EU members depend heavily on natural gas supplies from Russia. Despite the last mild winter and efforts to stockpile additional gas reserves, these countries will not be able to survive the winter on their own.
At the moment, there are no signs that cut-offs will actually occur.
Russia has strong financial reasons to be pragmatic when it comes to gas supplies to Europe. Its revenues heavily depend on gas exports to the continent. According to the US Energy Administration, natural gas exports to Europe accounted for $73 billion, or 14 percent of the country’s total export revenues in 2013.
At the moment, there is not enough LNG on the global markets to replace Russian imports. According to energy analysts, any attempt to fully replace Russian gas with LNG in the short-term would force a 127 percent hike in Europe’s natural gas prices.
The biggest and most demanding task will however remain to define and develop a reliable pipeline system that will diversify natural gas sources.
Source: oilpricecom- Russian Energy Influence Europe
