EU might ban gas imports from Russia by the end of 2023. Russia earns USD 15-25 billion annually from its gas exports. Its currently active exports to Europe are primarily undertaken through transit routes via Ukraine and TurkStream.
Jun 15, 2023
The European Union (EU) might ban imports from Russia’s gas pipeline by the end of 2023.
Some of the Russian gas exports in Europe via transit route through Ukraine and TurkStream are still active. Ukraine is expected to lobby for the ban. According to Mr. Walter Boltz, the energy advisor to the Austrian government, Russia earns USD 15-25 billion annually from its gas exports in comparison to Ukraine’s USD 800 million transit fee earnings. It is suggested sensible for Ukraine to forgo transit to prevent Russia from accessing its revenue.
Since the beginning of the Russia-Ukraine war, Russia has cut-off exports to many European countries, such as Poland, Bulgaria, and Finland. Gas exports to Germany via Nord Stream were also reduced in June, which was followed by a full cut-off in September. Gazprom, the Russian energy giant, has already stopped publishing data on gas exports to Europe.
Mr. Boltz shared in his interview with Independent Commodity Intelligence Services (ICIS), “The EU has acknowledged that it could manage without the remaining Russian pipeline gas it currently receives. However, some countries, particularly Hungary, which still rely on natural gas delivered via pipelines, might seek exemptions or resist an EU ban.”