The European Union Increases Gas Purchases from Russia Despite Sanctions

The European Union has increased its gas purchases from Russia this year, despite sanctions against the Kremlin due to its military invasion of Ukraine and the goal of halting energy purchases from Russia by 2027. Reuters reports that the EU has received 32 billion cubic meters of Russian gas through pipelines this year, which is 13% more than last year. The Financial Times, citing statistics from Kepler, reported an 8% increase in liquefied natural gas (LNG) imports from Russia by the EU, stating that from the beginning of the year until December 15, 16.5 million tons (about 22 billion cubic meters) of Russian LNG have entered the EU market. Meanwhile, Alexander Novak, former energy minister and current deputy prime minister of Russia, reported an 18 to 20 percent increase in Russian gas exports to Europe in the first 11 months of this year, reaching 50 billion cubic meters, noting that the advantages of Russian gas are its ease of transport and price. However, this figure is equivalent to one-fourth of Russia's gas exports to the EU before the military invasion of Ukraine, although it has grown compared to last year. The Financial Times also cited the low price of Russian gas as a factor in the increase of its exports to the EU. Russian gas is delivered to Europe through three pipelines: Yamal, TurkStream, and Ukraine. As the expiration of the gas transit contract through Ukraine approaches and the parties have not reached an agreement for its extension, an uncertain outlook has emerged for Russia in maintaining its European markets; although Gazprom, which monopolizes Russian natural gas exports, announced on Wednesday, December 26, that gas transit through Ukraine continues normally. Previously, half of Russia's gas was sent to the EU via Ukraine, but in recent years, gas transit through Turkey to Russian customers in Europe has increased, and transit through Ukraine has fallen to one-fourth of what it was before Russia's invasion of Ukraine. The EU has targeted a complete halt to energy imports from Russia by 2027. The latest calculations from the Centre for Research on Energy and Clean Air, based in Finland, indicate that since the military invasion of Ukraine until mid-December this year, Russia has exported over 810 billion euros worth of oil, petroleum products, and gas, with the EU's share of this amount being 25 percent. Since February 2022, when Russia began its invasion of Ukraine, the EU has purchased 111 billion euros worth of gas, 96 billion euros worth of oil and petroleum products, along with 3 billion euros worth of coal from Russia.