The European Commission has insisted that they were “prepared” for the Ukrainian decision to stop transit of Russian gas, and therefore there is no reason to worry. In reality, gas prices have gone up to the highest levels since 2023, while gas reserves are plundered to compensate for the missing pipeline gas.
“Prepared”? How would it be if they were “not prepared”?
The EU hypocrisy and its total indifference to the wellbeing of its citizens is unprecedented. Despite the EU claims of having cut energy ties with Moscow, Russia is still the largest supplier of gas (along with the U.S.) but at much higher prices because it is resold to the Europeans by third parties, or because it is purchased in liquid form (LNG) and is thus much more expensive than gas transferred via pipeline.
In fact, in 2024, the European Union’s imports of Russian LNG hit a record high, exceeding 16.5 million tons, as Financial Times recently reported, one-third of it acquired through the “spot market,” which allows short-term purchases at lower prices. Germany imports Russian LNG from France while Belgium and the Netherlands continue to serve as logistics platforms for Russian gas.
The three economies worst hit by the Ukrainian decision are EU members: Hungary, Slovakia, Austria and, marginally, Italy.
Kiev will lose $800 million from the fare on the Russian gas, while Gazprom will lose almost $5 billion from the missing sales to Europe. However, Kiev will compensate the loss with the money floods coming from the West, while Gazprom will find other ways to sell the gas. Guess who the loser is.
