Before the conflict in Ukraine, Russia accounted for more than 40% of EU gas needs, but this figure has now fallen to around 12%. “This is not a temporary situation, it marks a structural change in Europe’s energy outlook and trade orientation,” said Energy Commissioner Kadri Simson.
Gas prices in the EU are falling, she said, thanks to larger supplies from foreign markets outside Russia, a warmer-than-expected winter and reduced demand. The challenge now is to fill the gas storages before the start of the next winter heating season. The Europeans expect the United States to keep its promise on fuel deliveries. Competition in the LNG market is expected to intensify due to the recovery of the Chinese economy.
Meanwhile, Europe has been concerned about the US Inflation Relief Act, which provides $369 billion in subsidies to US industry. The European Union is concerned that business is heading to North America.
