Russia’s energy influence over Europe ‘is nearly over’ as bloc races to shore up winter gas supplies
Europe has endured a sharp drop in gas exports from Russia, traditionally its largest energy supplier.
It has deepened a bitter dispute between Brussels and Moscow and exacerbated the risk of recession and a winter gas shortage.
“Europe is heading towards a very difficult winter, probably two years of a very difficult adjustment with a lot of economic pain,” Agathe Demarais, global forecasting director at The Economist Intelligence Unit, told CNBC via telephone.
Agathe Demarais, global forecasting director at The Economist Intelligence Unit, a research and advisory firm, told CNBC that the Kremlin appeared to be weaponizing energy supplies and “burning bridges” with Europe while it still could.
Asked whether Russia’s energy influence over Europe may be coming to an end, Demarais replied, “Yes. Actually, very much so.”
“Europe is heading towards a very difficult winter, probably two years of a very difficult adjustment with a lot of economic pain. But then Europe is essentially going to become more independent with a more diversified mix,” Demarais said.
“And what that means is that Russia’s energy weapon is going to become moot,” she added. “Our view is that Russia knows that and that’s why it is already killing off gas supplies or inflicting uncertainty because it knows that if it wants to do damage to Europe it has to do it now. It is a now or never question.”
Race to fill gas storage
Germany, until recently, bought more than half of its gas from Russia. Yet, Europe’s largest economy is currently ahead of schedule in its race to fill underground gas storage facilities in order to have enough fuel to keep homes warm during the colder months.
Analysts told CNBC that Germany has been able to rapidly fill its gas stocks in recent weeks because of several factors. These include strong supply from Norway, the Netherlands and other countries, falling demand amid soaring energy prices, businesses switching from gas to other types of fuel, and the government providing more than 15 billion euros ($15.06 billion) in credit lines to replenish storage facilities. Read original full article
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Atlantis Viewpoint
It is unfortunate to see that a war had to break out to make Europe wake up and realise that it had been far too dependent on foreign energy supplies. Relying on something so essential, that heats homes, powers food production and the economy, even from an ally, seems a risky prospect. It leaves countries and regions open to external problems with supply, political shifts and the possibility of coercion or blatantly being held to ransom over cultural or political differences.
Europe should have already been transitioning in a huge way towards local energy sources and completely clean energy supplies and production. There are a range of unlimited energy sources throughout the European Union, from the high sun-fall southern regions of Spain to the geothermal areas in more northern regions, plus the vast coastal areas with tidal and wind potential.
Europe has the resources to power all of its business, domestic and transport energy needs without having to buy polluting fossil fuels from hostile external suppliers. It will take a big shift in infrastructure but it is an essential and inevitable path that must be taken, the sooner it is completed the sooner the European Union will be more independent and be causing less emissions harm to the population and our planet
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