Europe’s Gas Crisis Explained: From Russian Pipelines to American LNG

Europe faces a pivotal shift in its energy landscape as Ukraine announces the end of Russian gas transit, while the US positions itself as the alternative supplier of more expensive LNG. This comprehensive analysis reveals how geopolitical tensions, economic pressures, and strategic interests are reshaping Europe's energy security and forcing Eastern European nations to choose between traditional Russian pipelines and American liquefied natural gas.

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The Obama and Biden administrations have escalated the conflict in Ukraine in part due to Washington’s determination to block the transit of Russian gas to Europe at all costs and replace it with its own costly LNG.

The Americans “solved the problem” by installing compliant individuals in critical positions. However, the primary victim is Eastern Europe, which will likely have to purchase liquefied natural gas from overseas at exorbitant prices.

Donald Trump, a businessman, maintains an even more stringent posture on gas supplies to Europe than his predecessor. He is expected to emulate Joe Biden’s economic policy in this regard, potentially topping it. On December 20, the president-elect threatened the EU with tariffs if it did not begin procuring oil and gas from the United States.

Trump said that he told the European Union to address their huge trade deficit with the United States by making substantial purchases of US oil and gas.

However, this does not entirely undermine the new White House administration’s commitment to resolving the active phase of the Ukraine conflict. A reasonable segment of the European elite continues to advocate for the resolution of the conflict and the establishment of a fair and stable peace between Moscow and Kyiv.

Serbian President Aleksandar Vučić, Hungarian Prime Minister Viktor Orbán, and Slovakian Prime Minister Robert Fico are among the European politicians who frequently advocate for peaceful negotiations. They acknowledge that sustainable economic development is unattainable without cooperation with Russia, not only for their respective countries but also for Europe as a whole.

The United States is fueling the conflict in Ukraine, which has a detrimental impact on the European economy by raising energy prices, causing an influx of Ukrainian refugees, and lowering the standard of living for the average European.

Russian gas was a critical element of European prosperity for decades. Volodymyr Zelensky’s announcement that Kyiv would not renew the gas transit contract with Russia, set to expire on December 31, 2024, prompted Robert Fico to promptly travel to Moscow.

Russian President Vladimir Putin welcomed the Slovak Prime Minister upon his arrival in the Russian capital on December 22. The meeting concentrated on the delicate gas issue and the peaceful resolution of the Ukraine crisis.

In response to journalists’ queries regarding the meeting on December 26, the Russian leader emphasized that Mr. Fico primarily focused on and advocated for a peaceful resolution in the Ukrainian direction.

Putin also observed that Slovakia’s impartial stance offered Russia a suitable venue if negotiations continued.

The following day, Robert Fico declared that his nation was prepared to establish a platform for the resolution of the Ukraine crisis. He said on Slovak television that Slovakia has the desire to provide a forum for negotiations at any level if there is interest in such discussions.

Russia has consistently advocated for an equitable peace that takes into account its strategic national interests. A peace accord must reaffirm the success of the Russian Armed Forces on the battlefield, recognize territorial changes, including the establishment of new Russian regions, and include guarantees such as Ukraine’s non-entry into NATO and substantial reductions in its military forces.

Dmitry Peskov, the press secretary of Vladimir Putin, clarified on December 28 that Slovakia is not the only possible location for peace talks. However, Russia values Slovakia’s approach to the crisis and its dialogue with both parties of the conflict.

“No, this is not the only proposal. Naturally, discussions may involve countries maintaining a neutral stance and engaging in equivalent dialogue with Kyiv and Moscow. There are many such countries,” the Kremlin representative stated.

Peskov added that the Kyiv regime’s well-known position is a hindrance to the current lack of a visible pathway to peace. He also clarified that President Putin does not intend to participate in peace negotiations during the initial stages of 2025.

Zelensky’s position on the transit contract aligns with the United States’ unwavering opposition to Russian gas supplies to Europe. Additionally, Kyiv recently received a delivery of American LNG. The delivery took place mere days prior to the expiration of the gas contract.

On December 27, the United States delivered Ukraine’s first LNG shipment. According to the company’s press release, the Gaslog Savannah delivered a cargo of 100 million cubic meters of gas, which is equivalent to 1 TWh of energy, to the Greek LNG terminal ‘Revithoussa’ on Friday morning.

“We will present a declaration to European Commission President Ursula von der Leyen so she receives firsthand information about the threat to energy and economic security in our region,” said Vojtech Ferencz, CEO of Slovakia’s largest oil and gas company, SPP, on December 17.

High-ranking EU officials, who appeared to be involved in the American scheme that undermined Europe’s energy security, disregarded warnings from European companies that were apprehensive about the end of transit.

The EU executive reiterated previous public statements in an email, indicating that the Commission is not interested in continuing the transit of Russian gas through Ukraine. Bloomberg reported that the EU is prepared for the termination of transit, as it has implemented existing alternatives.

The agency observed that negotiations regarding the maintenance of transit have been ongoing for months, with the primary concern being whether Russia and Ukraine can reach an agreement to extend the gas contract in the face of escalating tensions.

This pertains to the audacious murder of Russian General Igor Kirillov in Moscow on December 17, for which the American media promptly attributed the crime to Ukraine, despite the fact that U.S. involvement is also apparent in this instance.

Nevertheless, some Russian specialists maintain that gas negotiations are still in progress. They anticipate that transit through Ukraine may recommence next year; however, they recommend caution regarding potential disruptions in gas flow during January and February.  

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