The US Plans to Increase Natural Gas Export to EuropeMay 27, 2022
The US President, Joe Biden, and his European counterparts held a NATO meeting on 25th March 2022 in Brussel to discuss some of the European block concerns. The meeting follows Ukraine’s invasion by Russia. This decision received worldwide condemnation, with one hundred and forty-seven member countries of the United Nations Convention of Peace and Security voting against the Russian decision. The European Union and the US suggestions on negotiation between Ukraine and Russia remain futile. However, talks are in progress to bring the warring sides into a binding agreement that will lead to a halt in Russia’s military action.
Ukraine’s invasion has caused the deaths and destruction of infrastructure. The crisis has also led to a refugee crisis, with more than 3.5 million Ukrainians crossing into neighboring countries to evade war. The US, Canada, and European Union members have imposed sanctions on Russia to prevent further territorial advances into Ukraine. The sanctions cut across critical areas, including canceling flight movement into Russia, holding property held by its oligarchs, cutting the SWIFT payment system, and acquiring all foreign currency reserves of Russia’s central bank.
The imposed sanction adversely affects Russia’s capacity to transact international business and aims to isolate the nation for its roles in the unprovoked war. The imposed sanctions will also affect the European Union as the bloc hugely relies on Russian gas imports to heat their homes and other industrial applications. European nations seek to find an alternative energy source to mitigate the negative effect that countries could suffer if Russia decides to cut off gas supplies in retaliation for the sanction imposed by the nations. The European nations wish to immediately reduce the amount they acquire from Russia while increasing their capacity of renewable energy sources to achieve self-sustenance by 2030.
The US and European nations drafted further sanctions to pressure and stop the Russian offensive. During today’s meeting, Joe Biden promised Germany and her European counterparts that his country is committed to boosting the supply of natural gas in an environmentally friendly manner to mitigate against adverse effects of climate change. The US’s annual export of natural gas to the EU will be 15 billion cubic meters. The volume will represent a tenth of what Russia currently exports to European nations. The decrease in the fund will pressure Moscow to stop its military offensive on Ukraine. The energy-producing companies in the US should start to produce at their capacity to cater to this increased demand which will boost the American economy due to the increased volume of exports.