In a new publication, the Bruegel think-tank looks at how the EU has adapted to the energy situation following Russia’s invasion of Ukraine just two years ago. While energy trade between the EU and Russia has fallen considerably since February 2022, the authors believe that the EU could still do more to reduce its dependence.
In total, the EU has reduced Russian fossil fuel imports from a maximum of $16 billion dollars per month at the beginning of 2022 to around $1 billion per month at the end of 2023. Oil imports accounted for most of the reduction.
An EU embargo on crude oil imports came into force in December 2022, followed in February 2023 by an embargo on petroleum products. The G7 countries have also introduced a global cap on Russian oil prices. However, Russia has been able to continue selling oil at prices above the cap, largely because G7 shipowners and insurers (including from the EU) have been replaced.
As far as gas is concerned, the EU has countered the fall in Russian gas imports by increasing imports of liquefied natural gas (LNG) and reducing demand.
The authors of the analysis consider that the EU has shown resilience thanks to the strength of its internal market and the spirit of solidarity between Member States, but attention is now turning to the persistent problem of high prices and the long-term implications for competitiveness.
They also believe that more rigorous enforcement and stronger action by the G7 is needed to deal with breaches of the oil price cap.
Finally, the authors conclude that the EU should move away from its dependence on Russian nuclear fuel products.
To see the analysis: https://aeur.eu/f/ays (Original version in French by Pauline Denys)