Tehran, IRNA – Europe is bracing for an energy crisis in the wake of its sanctions on Russia over the conflict in Ukraine.
The continent is now being divided on whether to introduce more punitive measures targeting Russian energy as it tries to reduce reliance on Moscow.
On Tuesday, the European Commission proposed new anti-Moscow sanctions, including a ban on purchasing Russian coal and on Russian ships entering EU ports.
The bloc is also considering a ban on Russian oil and gas, as it insists on reducing dependency on Russia as soon as possible.
But the issue has already divided the EU, as the 27-member bloc heavily depends on Russian energy.
Divided EU
According to the European Commission, the EU coal imports from Russia stand at 45%.
The figure is the same for gas imports, while the bloc depends on Russia for 25% of its oil imports.
Supporters of sanctions on Russian oil believe that the measures are required to target the country’s economy and cut its revenues.
Opponents, however, argue that the punishment would hurt EU economies more than Russia’s.
They also say that bans on Russian oil and gas would make it difficult for the Europeans to heat their homes next winter, while the embargos would increase the already-high energy prices on the continent.
All of that, the opponents say, would impose heavy costs on European governments at the time when they are still dealing with the economic repercussions of the COVID-19 pandemic.
Another challenge faced by those governments is the opposition’s calls in their countries for a stop to imports from Russia over its alleged crimes in Ukraine, as these opposition groups accuse the ruling governments of financing the Ukraine war through buying Russian energy.
Reliance on Russian oil
Russia is the third largest oil producer in the world after the United States and Saudi Arabia, exporting nearly 5 million barrels of oil per day, half of which goes to Europe.
Global oil prices have already soared, reaching 140 dollars a barrel at some point, after the EU along with the US and other countries like Canada and Japan imposed sanctions on Russian entities and individuals in the early days of the Ukraine conflict that began on February 24.
The soaring prices saw gasoline prices jump too. Now, with the EU considering bans on Russian oil that provides one-fourth of gasoline supplies in Europe, experts warn that gasoline prices would further increase if such bans take effect.
Dependence on Russian gas
The EU imports the lion share of its gas imports from Russia via pipeline that passes through Ukraine.
Although the bloc is seeking to replace that gas with liquified natural gas (LNG) which is shipped, LNG imports would not completely meet Europe’s needs.
That’s because LNG is more expensive that gas imported via pipeline and not all European countries possess required infrastructure for importing LNG.
According to Euronews, Spain has in recent years built terminals for LNG imports, while two other EU member states; namely Greece and Poland, are constructing such terminals too.
But, the construction of LNG terminals is a time-consuming measure that cannot offer great help to the EU.
Other attempts to reduce dependency on Russian gas need time to bear fruits, including efforts to invest in wind and solar energy.
The EU’s efforts to wean itself off the Russian energy face another challenge too, as Russia has taken measures in response to the West’s sanctions on its economy, including a ban on exports to “unfriendly countries” in dollar and euro, with importers having to pay in rubles to buy Russian products.
Source: Islamic Republic News Agency – IRNA
