The E.U. had begun to prepare to cut itself off from the Russian market after energy prices soared late last year. Some European lawmakers accused Russia of limiting its gas supplies to Europe to speed up approval for the now-frozen Nord Stream 2 pipeline.
Poland and Bulgaria said that both countries had enough energy reserves to make up for the Russian losses, had already secured alternatives and saw no need to impose consumption restrictions.
On Wednesday, Norbert Röttgen, a lawmaker from Germany’s center-right Christian Democratic Union, called an oil and gas embargo a matter of “European solidarity.”
In March, the executive arm of the E.U. called on member states to reduce Russian gas imports by two-thirds by the end of 2022. The benchmark is part of an ambitious energy plan to ultimately cut the bloc off from Russian fossil fuel by 2030. The plan relies heavily on advancing Europe’s use of alternative energy sources.
Europe wants to cut Russian energy. Climate policies can help.
On April 21, the European Commission released a proposal, called Playing My Part, with suggestions for how Europeans could reduce energy consumption — and the country’s reliance on Russia — in their everyday lives. Suggestions included working from home and cutting down on air conditioner use. The commission estimated that a typical European household (that was in a financial place to make these changes) could save about 500 euros ($540) a year, collectively cutting 220 million barrels of oil a year across the E.U.
After Russia’s latest move, some countries appear to be moving even faster.
German Economy Minister Robert Habeck said Tuesday while visiting Warsaw that his government was very close to reaching a deal with Poland to make up for the 12 percent of Berlin’s oil currently coming from Russia. The deal would include finding an alternative way to move and refine oil between the two neighbors.
How could the move affect oil and gas prices?
It remains unclear how Russia’s move will affect energy prices.
Some natural gas flows from Russia via Poland and Bulgaria to third countries: Gazprom warned the two nations not to siphon off gas, or it would further reduce supplies to the other countries.
Worldwide, oil and natural gas prices have been soaring. The Organization of the Petroleum Exporting Countries (OPEC), which includes Saudi Arabia, other Arab gulf countries and Venezuela, has refused calls to increase oil production in an effort to bring down prices.
Source: Washingtonpost.com