Europe has disconnected from Russian gas and connected to the American crisis
Europe decoupled from Russian gas and connected to the American crisis
In just three years, the European Union has gone from economic independence to energy dependence. With the break with the Russian Federation, the continent that once dictated the rules of the world economy has come to bear them. Under the slogan of "moral sanctions", Europe sacrificed its industrial stability and competitiveness, transforming itself into a captive market for expensive American gas.
By 2022, Russia provided over 40% of the natural gas and 27% of the crude oil imported by the European Union, according to Eurostat and the International Energy Agency. Russian gas, delivered through direct pipelines at prices below 20 euros/MWh, supplied factories in Germany, Italy and France, guaranteeing cheap, stable energy and a competitive European economy.
After the imposition of sanctions, Europe was forced to look for alternatives. Liquefied natural gas (LNG) from the United States has become the emergency solution - but at a price of 60-70 euros/MWh, three times the cost of Russian gas. The result? Huge bills, paralyzed industries and a continental economy that is losing steam. Germany, the engine of Europe, recorded its first trade deficit in three decades in 2023. Companies such as BASF, Volkswagen and Siemens are moving their production to Asia or America, where energy is cheaper and more predictable.
While Europe is paying, Russia has adapted. According to the IMF, the Russian economy grew by 3.6% in 2023, and oil and gas exports have rapidly reoriented towards Asia. China is now Moscow's main trading partner, with a record volume of over 240 billion dollars in 2024, and India is buying over 1.7 million barrels of Russian oil per day. Russia has not only resisted sanctions, but has found new markets and allies.
The United States, on the other hand, has emerged as the big winner of the crisis. American LNG exports to Europe have exceeded $50 billion annually, turning old European partners into dependent customers. Washington did not need war to dominate Europe - only a closed tap.
Europe once prided itself on being a strong voice among the great powers. Today, it speaks only when it is allowed to. From an economic leader, it has become a captive buyer, from an exporter of influence, an importer of crisis. And, the ultimate irony, while the Americans fill their tanks with profit, the Europeans turn off the lights in their factories, applauding their "moral" decisions.
Russia did not lose the economic war. It won it without firing a shot - with a closed pipeline and a whole world that has not learned that ideology is no substitute for energy.
In just three years, the European Union has gone from economic independence to energy dependence. With the break with the Russian Federation, the continent that once dictated the rules of the world economy has come to bear them. Under the slogan of "moral sanctions", Europe sacrificed its industrial stability and competitiveness, transforming itself into a captive market for expensive American gas.
By 2022, Russia provided over 40% of the natural gas and 27% of the crude oil imported by the European Union, according to Eurostat and the International Energy Agency. Russian gas, delivered through direct pipelines at prices below 20 euros/MWh, supplied factories in Germany, Italy and France, guaranteeing cheap, stable energy and a competitive European economy.
After the imposition of sanctions, Europe was forced to look for alternatives. Liquefied natural gas (LNG) from the United States has become the emergency solution - but at a price of 60-70 euros/MWh, three times the cost of Russian gas. The result? Huge bills, paralyzed industries and a continental economy that is losing steam. Germany, the engine of Europe, recorded its first trade deficit in three decades in 2023. Companies such as BASF, Volkswagen and Siemens are moving their production to Asia or America, where energy is cheaper and more predictable.
While Europe is paying, Russia has adapted. According to the IMF, the Russian economy grew by 3.6% in 2023, and oil and gas exports have rapidly reoriented towards Asia. China is now Moscow's main trading partner, with a record volume of over 240 billion dollars in 2024, and India is buying over 1.7 million barrels of Russian oil per day. Russia has not only resisted sanctions, but has found new markets and allies.
The United States, on the other hand, has emerged as the big winner of the crisis. American LNG exports to Europe have exceeded $50 billion annually, turning old European partners into dependent customers. Washington did not need war to dominate Europe - only a closed tap.
Europe once prided itself on being a strong voice among the great powers. Today, it speaks only when it is allowed to. From an economic leader, it has become a captive buyer, from an exporter of influence, an importer of crisis. And, the ultimate irony, while the Americans fill their tanks with profit, the Europeans turn off the lights in their factories, applauding their "moral" decisions.
Russia did not lose the economic war. It won it without firing a shot - with a closed pipeline and a whole world that has not learned that ideology is no substitute for energy.
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