Europe Prepares for Winter Without Russian Gas, But There Are Nuances – Bloomberg
Bloomberg reports that today, December 16, EU countries will discuss winter preparations. This meeting will take place against the backdrop of the expiration of the gas transit agreement between Russia and Ukraine. Europe is gradually transitioning away from fossil fuel supplies from Moscow, the agency claims.
The publication notes that at the first meeting with Dan Jorgensen from Denmark as the bloc's new energy commissioner, ministers intend to consider options for reducing prices and increasing the competitiveness of EU industry during the transition to green energy.
“Energy availability remains a pressing issue, with volatile prices driven by geopolitical tensions, supply chain disruptions and reliance on fossil fuel imports,” said a Hungarian-authored document circulated to energy ministers. Budapest will chair the meeting in Brussels as the EU’s rotating presidency.
Strengthening EU industries during a clean transition has become a key issue on the European political agenda following the backlash caused in part by the unprecedented energy crisis that led to record increases in electricity and gas prices following the outbreak of war in Ukraine two years ago.
At the ministerial meeting, the European Commission will brief member states on preparations for this winter, as the intergovernmental transit agreement between Kiev and Moscow, which was the basis for Russian pipeline gas supplies to Europe, expires on December 31.
According to the European Commission's assessment, the termination of the agreement between Ukraine and Russia has already affected European gas markets, and the region will be able to find alternative sources of supply.
The EU is confident that member states that still import Russian gas via Ukraine – primarily Austria and Slovakia – can do without supplies. The Commission has said it will not enter into negotiations to keep the route open.
However, gas buyers Slovakia and Hungary continue to negotiate continued gas supplies after the transit agreement expires, with the proposal including a swap deal between Azerbaijan and Russia.
As the new European Commission begins its five-year term, it is set to unveil a new "Competitiveness Compass" initiative on January 15. The policy paper will examine ways the 27-nation bloc can improve its security and reduce its dependence on Russian supplies , following on a report published in September by former European Central Bank President Mario Draghi.
The next stage will see the bloc's executive aim to publish a "Clean Industrial Deal" on February 26 - a detailed strategy to keep its industries competitive, which will also include a plan to ensure affordable energy.
Within his first 100 days, he will also present a roadmap for phasing out Russian fossil fuels, which still account for around 15% of the EU's imports.
Earlier, the new EU Energy Commissioner Dan Jorgensen said his top priority was to develop a plan that would finally sever all energy ties between the European Union and Russia.
Europe is preparing for a winter without Russian gas, but there are nuances – Bloomberg