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US boosts Europe’s fuel supply to repel threat of Russian cuts

Russia provides about a third of gas and crude oil imported by the European Union. Last year, Russia supplied about 128 billion cubic meters of gas to Europe, according to industry estimates, and about a third of that flows through Ukraine.

Russia has reduced that flow this winter, and its effort to open the Nord Stream 2 pipeline, connecting Siberia with Germany, will give the country a path to move all of its gas around Ukraine, crippled Ukraine’s main source of government revenue while increasing Europe’s dependence on Russian supplies.

Biden administration officials describe the initiative to get fuel from alternative sources pouring into Europe now, before a real crisis breaks out, which Biden administration officials have described as a factor. key to assuring allies that they will be able to weather any supply cuts from Russia. And they argue that Russia’s overwhelming reliance on oil and gas sales – which account for more than a third of the country’s gross domestic product and the majority of government revenue – creates a hole in Moscow that Western allies could exploit.

“If Russia decides to weaponize its supplies of natural gas or crude oil,” a senior administration official told reporters on a call Tuesday morning, “there will be no consequences for the economy.” Russian economy. Remember, this is a one-way economy, and that means it needs its oil and gas revenues at least as much as Europe needs its energy supply.”

The official added: “We are expected to be prepared to ensure alternative supplies cover much of the potential shortfall. ”

The official declined to say which countries are collaborating on efforts to rapidly replace oil and gas from Russia, but several sources are clear, including Saudi Arabia and existing suppliers. like Norway. But all of those suppliers face capacity constraints, so the US effort seems focused on gradually increasing output from a variety of sources.

The official, who declined to be named according to summary rules set forth by the administration, said the effort involved promoting “a number of goods from different suppliers”, and may involve involves sending shipments of liquid natural gas from the United States and other manufacturers.

https://www.nytimes.com/2022/01/25/us/politics/us-europe-fuel-supply-russian-cutoff.html US boosts Europe’s fuel supply to repel threat of Russian cuts

Fry Electronics Team

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