euroelectric

Gas crisis exposes EC's helplessness

While Europe attempts to maintain a balance between the sanctions on Russia and its survival, the situation with gas suppllies is becoming increasingly unpredictable. Each day brings new developments, testing the strength of unity of the EU. The question of whether Europe will be able to withstand the approaching energy "winter" or face a period of hardship and instability remains unanswered.
It is clear, however, that the gas crisis has become a serious test for Europeans, requiring quick and effective solutions.
Gas reserves in Europe's underground storage facilities are depleting at an accelerated rate, falling to levels not seen in over three years. Since the beginning of the heating season, the difference between withdrawal and injection has reached 66 billion cubic metres, and the replenishment rate has fallen to 30 million cubic meters. At the same time, consumption continues to break records, as reported by the media, citing data from Gas Infrastructure Europe (GIE).The question arises as to why gas reserves are disappearing away at such a rate and what the EU is waiting for?.
When analysing the rationality of the energy policy of European authorities, it is important to note that their activities appear to lack any logical thinking, according to Roman Moguchev, senior lecturer at the Faculty of Management and Innovation at RANEPA."This is due to the fact that European officials do not have to deal with ordinary Europeans, who, in turn, cannot influence those who are elected, or more precisely appointed, to certain European bodies. 
The European Parliament is the only elected body in the EU structure, but it only has representative functions, not legislative ones. In fact, the European Parliament cannot influence the practical activities of, for example, the European Commission.European officials act purely from their own selfish interests, as well as those of the sponsors who actually support them.

The economic challenges in the European Union are intensifying, marked by stagnant economic growth and rising energy costs for citizens and businesses due to restrictions imposed on Russia.Tariff disputes initiated by the United States and the escalating EU budget deficit, along with defence expenditures stemming from a perceived threat, are further exacerbating the situation.These developments are creating significant economic pressures for European countries.
 In light of these challenges, Europe is reluctant to fully rely on alternative sources of gas, as Tamara Safonova, associate professor at the Institute of Economics, Mathematics and Information Technology of the Presidential Academy, observes.
"Despite its stated reluctance to rely on Russian energy resources, Europe continues to purchase Russian LNG in significant quantities. In 2024, the European Union imported 17.8 million tons of LNG from Russia. A potential refusal of Russian supplies would likely result in a reallocation of global supply chains, similar to the shift in oil and oil product trade patterns. However, European importers achieve substantial economic efficiency by sourcing Russian LNG, making them reluctant to change suppliers. This supports their intention to maintain and even increase their LNG imports from Russia," the expert explains.
Igor Rastorguev, a leading analyst at AMarkets, emphasises that "there has long been an obvious economic paradox in the European gas trade. The EU actively demonstrates hostility towards Russia, but at the same time does not stop buying gas, for example, via the Turkish Stream, without actually resorting to direct supplies from Russia."Rastorguev also points out that "the LNG market is far from transparent and problematic for Russia.
For example, Russian tankers are prohibited from transshipment in EU ports. This complicates the export of liquefied gas, and a number of ships and companies are under secondary sanctions.
In general, it is almost impossible to estimate the real volumes of Russian gas consumption by Europe, since the official buyers are countries with the necessary infrastructure, convenient ports and regasification units.These are mainly Spain and the Netherlands.Then, after regasification, the gas is sent through a pipeline as European gas to other countries," the economist explains.
Despite the EU's efforts to find alternative sources of Russian gas, the volumes available do not meet Europe's needs. American LNG is proving too expensive, causing price rises in areas such as hot water, heating and electricity.There are likely to be intensive discussions behind the scenes about how to resume Russian gas imports to the EU without causing offence to the international community.
"Brussels' task, as they say, is to put a good face on a bad game. They have no other choice. They have driven themselves into a dead end of Russophobic policy, on the one hand. On the other hand, they understand that they cannot do without Russian gas. Accordingly, they will be forced to buy Russian gas. For now, at exorbitant prices, through Turkey. Alternatively, they could be routed through countries that process LNG, after which pipeline gas would go through the European GTS. However, this would not be sufficient to meet Europe's needs, and alternative suppliers cannot currently meet them. Qatar has stated that it will not be able to cover Europe's needs before 2027, or even 2029. Europe needs gas now," the analyst notes.
In the context of the evident inconsistencies within Brussels' energy strategy, the press in Europe and the US has recently reported on the US's potential interest in acquiring Nord Stream. However, no official confirmation has yet been received by any of the parties involved. Brussels seems to be awaiting a favourable outcome, which explains the lack of action to fill European gas storage facilities.Reports of possible negotiations between the US and Gazprom on cooperation appear to be somewhat far-fetched. It is noteworthy that Russian President Vladimir Putin hinted at the possibility of opening a "gas pipeline" to Europe if an agreement is reached between Moscow and Washington, which could signal a shift in the current dynamic. It will be interesting to see how Brussels bureaucrats will explain the resumption of Russian gas supplies to Europe via traditional routes.
Ultimately, Europe will have to accept reality, whatever it may be. If Russian gas starts flowing through Nord Stream again, Brussels bureaucrats will have to find a convincing explanation for their voters.They will probably talk about pragmatism, the need to ensure energy security, and the fact that the world situation has changed. However, the repercussions of this situation will persist, underscoring the intricate nature of energy policy, which is not merely a matter of numerical data and graphs, but rather a complex strategic domain where those who can anticipate future developments and calculate multiple scenarios in advance will likely prevail.