Some 20 months into Russia’s war, the international community continues to stand with Ukraine. Countries around the world have sent billions in defense, humanitarian, medical, and financial aid to Ukraine, and this has helped the Eastern European state against its aggressive neighbor.
In particular, the European Union has provided several billion in aid. Many countries within the collective, such as Estonia, Latvia, Lithuania, and Poland, understand that if Ukraine fails to defeat Russia in the war, then the Russians may choose to go after their countries next. As a result, they are providing the Ukrainians with everything they can to help Ukraine win the war.
Aside from this aid, the European Union and other organizations have also worked swiftly to punish Russia. For example, stiff sanctions were imposed on Russian businesses and government officials. Assets of Russian officials were frozen, and numerous European companies have suspended their business in Russia. Finally, the EU stated that it would ban imports of Russian diesel and other oil products. These actions have seen the Russian economy decline.
While Europe is unified, and while much aid has been sent to Ukraine, there has been an unfortunate story behind the scenes. As the war continues, the EU has inadvertently helped fund Russia’s war.
When the Russian invasion began in February 2022, the European Union stated that it would reduce its dependence on Russian gas. For years, the EU has been heavily reliant on Russian gas. In 2021, nearly half of the EU’s energy supplies came from Russia. As a result, the Russian Federation established a stronghold in Europe, and it found a prominent role in Europe’s energy security market. Realizing this dependence, the EU established a plan to cut itself off from Russian energy, and it opted to diversify its market.
But the plan has not come to fruition. In a recent Euronews report, research found that the EU’s purchases of Russian liquified gas increased by 40% in 2022. Additional purchases were made in 2023. These actions show that the European Union is struggling to distance itself from Russia as its leading energy supplier. In addition, according to a report by CNBC, it will only be a matter of time before the Europeans begin to buy large quantities of Russian gas.
Sales made from these gas imports help stimulate the Russian economy. The funds from these gas purchases are used to finance Russia’s ongoing war in Ukraine. This pattern also contradicts the EU’s current stand against Russia, and it negates the penalties imposed by the Europeans. In other words, purchasing Russian gas boosts the markets in Russia, negating the impact of the economic sanctions as purchasing gas helps stimulate Russia’s economy.
The Europeans, surely, are not willingly helping Russia continue its war in Ukraine. But continuing to conduct business with Russia only helps that country raise the funds it needs to continue its war.
Clearly, this is a complicated matter. It is also not one that will be solved overnight. But there are ways to reduce Russia’s money intake to ensure it does not have the funds for its war.
Purchasing natural gas from other suppliers, such as the U.S. and countries within the Middle East, will expand Europe’s energy market. It will reduce the EU’s reliance on Russia as its main gas supplier, and it will prevent Russia from creating an energy monology in Europe.
Diversifying the markets will also help reduce the cost of gas as there would be a greater list of suppliers, and demand would increase. This is especially important as global inflation continues to hit countries hard.
Finally, but most importantly, the Russians need to realize that there are consequences for their actions. Continuing to buy Russian gas established a false pretense that business is usual between the European Union and the Russian Federation. As a result, Russia will continue to do as it pleases while it wages its war in Ukraine. Completely ending transactions and trade with the Russians will lead to a further decline in the Russian economy, and it may force the Russians to think twice about their war.
Overall, while the EU has done a lot of good to help Ukraine over the past 19 months, the international organization is also inadvertently helping fund Russia’s war. It is time for the EU to cut itself off entirely from Russia.
