In 2021 alone, Russia supplied 32% of global demand for the European Union and the United Kingdom; The value of exports reaches 400 million dollars a day
REUTERS/Kacper Pempel
On Tuesday, the 26th, the stateowned Gazprom company announced that it would shut down Russian gas Poland and Bulgariatwo countries in the North Atlantic Organization (NATO) and gives European Union. This decision has sparked fears in the rest of the European community about the shortage of this fuel they depend on. However, EU officials have already said they are prepared for an eventual Russian gas disruption and are working out a coordinated response. The President of the European Commission, Ursula von der Leyensent a message to Europeans that they “can rest assured that we are united and in solidarity with the Member States concerned”.
This fear of some countries is related to the fact that the Europe relies on Russian gas. In 2021 alone, the Russia covered 32% of the EU’s global gas needs and Great Britain, a 25% increase compared to 2009, according to the International Energy Agency (IEA). Dependency varies by country. While Finland gets 97.6% of its gas from Russia, according to Eurostat, the Baltic countries (Estonia, Latvia and Lithuania) announced this month that they would cut ties with Moscow and stock up on underground reserves. Target of Gazprom decision, Bulgaria is 85% dependent on Russian gas, same level as Slovakia. And Germany, the main European economy, is 55% dependent, but the government guarantees that “supply is currently guaranteed”.
Following the suspension, Ukraine said Europe should stop relying on Russia for trade after Moscow halted gas supplies to Bulgaria and Poland. “The sooner Europe realizes that it cannot rely on Russia for trade, the sooner it will be possible to guarantee stability in European markets,” said Ukrainian President Zelenskyy. While European Commission President Ursula van der Leyen said Gazprom’s decision was “another attempt by Russia to use gas as a blackmail tool,” EU member states’ ambassadors called for clearer guidance on sending euros in breach of sanctions would.
In response to the EU, the spokesman for the Kremlin, Dmitry Peskov said Russia remains a reliable energy supplier and declined to say how many countries have agreed to switch gas payment to rubles, but other European customers said supplies are flowing normally. The Russian decision comes as Russia’s own economy suffers from sanctions and Western countries are sending more arms to Kyiv despite warnings from the Kremlin to pull out. The reason why Putin stopped supplying gas to Russia is the fact that European Union countries, including France, Germany and Poland, have refused to pay for the product in rubles at the end of March the Russian leader said that he would no longer accept payments in currencies other than their own, a move that came in response to Western economic sanctions against Moscow.
What does gas mean for the Russian household?
Gazprom Export’s website presented the results on how much Russian gas accounts for the Russian budget and reported that 68% of the group’s exports in 2020 were destined for Europe. Of a total of 174.9 billion cubic meters exported, 119.35 billion were destined for Europe, of which 49 billion went to Germany, almost 21 billion to Italy and over 13 billion to Austria. The IEA said that 45% of Russia’s federal budget in January came from gas and oil taxes and export tariffs. “Taking into account current market prices, the value of gas exports from Russia to the European Union reaches $400 million per day,” the agency emphasizes.
*With information from AFP