Putin braces for huge economic boost as EU continues to depend on Russian energy under new deal | Sciences | News
Putin has “vast power” over European economies, expert says
The proposed measures were set out in Part II of the overhaul of EU climate change policy. As the bloc seeks to reduce its dependence on fossil fuels to meet its goal of net zero by 2050, the role of gas has been an issue dividing the EU for several months. Now the bloc has presented a plan to reform its gas markets, which aims to bring low-carbon gases like hydrogen into the grid.
But the EU recognizes that natural gas is still needed as part of the transition, accounting for around a quarter of the bloc’s energy.
Among other proposals, the Commission today announced a system for countries to jointly purchase gas to build up strategic reserves, with countries like Spain and France saying it would help them secure their supply.
And experts from the European Commission have called natural gas a transitional fuel, allowing some countries to start their energy transition from coal to pure renewable energies.
But as prices have skyrocketed to record highs in recent months as Europe struggles to avoid a crisis, this may not be the wisest decision.
It comes after Russian President Vladimir Putin reportedly restricted gas volumes traveling to Europe in hopes of speeding up approval of the Nord Stream 2 pipeline.
Putin’s grip on EU gas set to continue after new EU deal
Nord Stream 2 will ship gas from Russia to Germany, bypassing Poland and Ukraine, and Mr Putin has been accused of using the pipeline as a geopolitical weapon as gas supplies to Europe were slashed by Gazprom, the Russian state conglomerate, while the company’s profits soared.
While Germany has already suspended the certification of the gas pipeline, the changes proposed by the EU to the gas market could give more electricity back to Russia.
The Jacques Delors Energy Center published a report which showed that Gazprom is the only gas supplier to Europe with export capacity.
And Europe’s dependence on gas from Russia increased from 30% to 41% in 2021, while at the same time gas prices have skyrocketed as a result of the compression of M . Putin.
Olexander Scherba, chief advisor to Ukrainian gas giant Naftogaz, told Express.co.uk earlier this month that Mr Putin has the potential to keep a firm grip on European energy.
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Nord Stream 2 pipeline
It comes as tensions with Russia and Ukraine soared after 100,000 people were reportedly spotted on the Russian-Ukrainian border.
He warned that Russia may continue to snub the West by cutting off gas supplies passing through its vast network of gas pipelines, some of which bypass Ukraine on their way to Europe.
He said: âIn the current situation, even with the Yamal-Europe gas pipeline (the main gas pipeline from Russia to Europe), the Ukrainian gas transport system is important and necessary.
âIf Putin is reasonable, it is a huge factor of stability for the entire energy supply between Russia and Europe.
âUkraine has the largest gas storages and doubles the capacity up to Nord Stream 2.
âThis is something that Europe and Russia should stick to and unfortunately it is not at the moment.
“Unfortunately, that is not the case at the moment and the simple act of throwing this transport system under the bus would be a huge loss not only geopolitically but also economically for Europe.”
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Ursula von der leyen
But while the EU deal could maintain a heavy reliance on Russian gas, supporters of the new proposal argue that gas supplies can be secured.
The new system would allow transmission system operators (TSOs) in Member States to jointly purchase strategic stocks of gas, which could be used in an emergency when supplies become extremely scarce.
Countries like Spain, Greece and Romania have argued that it will help consolidate supplies.
The bloc is also planning to diversify its energy sources by adding more low-carbon gas to the grid and adding nuclear to the EU’s taxonomy.
The bloc plans to add nuclear to the taxonomy of the EU.
European Commission President Ursula von der Leyen said: âWe need more renewable energy. They are cheaper, carbon free and grown on site.
âWe also need a stable source, nuclear, and during the transition, gas.
âThis is why we will present our taxonomy proposal. “
The EU Taxonomy for Sustainable Activities is a classification system that determines which investments are environmentally sustainable.
Adding nuclear to the EU taxonomy would mean that projects that are part of nuclear investments would have no difficulty in securing support from banks.
A bloc of European countries, including the Czech Republic, France, Romania, Slovakia, Slovenia and Hungary signed a letter demanding that nuclear energy be recognized as a sustainable source.