Many energy super-majors have been pushing a self-interested profit-maximisation narrative that Europe needs more LNG (Photo: Razom We Stand)
As we reach the tragic milestone of the second anniversary of Russia’s full-scale invasion of Ukraine, the horrors inflicted upon innocent Ukrainian people serve as a stark reminder of the role played by profits from Russian oil and LNG gas exports to the West.
This week, Russian troops have closed in on “hellish” Avdiivka in eastern Ukraine.
In a tragic story now all too familiar, elderly Ukrainians with nowhere to go resisted evacuation from their life-long homes, even as Russia was reported to be executing injured prisoners.
Such tragedies, with well over 100,000 Russian war crimes now registered, underscore the urgent need to stop international LNG investments in Russia that continue to fund Putin’s war chest.
Many energy super-majors have been pushing a self-interested profit-maximisation narrative that Europe needs more LNG. But these fossil fuel companies are merely trying to build on the trend of their record-breaking profits due to the war.
The ‘energy security’ narrative, however, looks different.
Europe currently hosts numerous LNG terminals, with buildout capacity outpacing demand, while forecasts and a new German study predict a long-term decline in gas demand.
Instead of doubling down on taxpayer-subsidised and climate-wrecking LNG, we must prioritise investments in cheaper renewable energy solutions.
Russia’s staggering profits from fossil fuel exports, exceeding $600bn [€554bn], illustrate the financial lifeline supporting the Kremlin’s thirst for blood and power. If stringent sanctions curb this revenue, the Kremlin’s war chest could plummet by 40 to 50 percent by 2030, according to the International Energy Agency.
Already seismic shifts
Since Russia’s full-scale invasion of Ukraine in February 2022, Europe’s energy landscape has undergone seismic shifts.
The European Commission’s REPowerEU Plan, launched in May 2022, signalled a decisive move towards energy diversification and renewable sources.
Despite initial concerns about gas shortages, Europe swiftly adapted. After the implementation of REPowerEU in 2022, only nine percent of EU gas imports came via pipeline from Russia, a significant drop from the 41 percent of the gas the EU imported from Russia in 2021.
Europe’s resilience without Russian gas exports, or new US gas terminals expected to come online in the 2030s, spotlights the viability of rapidly growing clean energy. By transitioning to cheaper, cleaner, sustainable energy sources, European nations can grow their economies and create high-quality green jobs while addressing climate imperatives.
Now is the moment to prioritise clean and renewable energy, not just as an alternative but as a catalyst for economic recovery, environmental restoration, and community resilience. Clean energy initiatives in Ukraine have showcased the transformative power of renewables in the face of adversity, and record-breaking growth of renewables addresses energy demand and mitigates climate challenges, positively impacting local economies.
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The current decline in gas and LNG prices in the UK and Europe presents an opportunity to reevaluate the energy we chose to use in the future. Instead of perpetuating reliance on Russian LNG, the UK and Europe have witnessed unprecedented falls in fossil-fuel use by embracing cleaner energy sources. In the EU, renewables rose to a record 44 percent share of EU power and, for the first time, wind produced more electricity than gas in 2023.
By entirely severing ties with Russian oil and gas, nations can mitigate economic losses in the trillions, contribute to global climate resilience, become energy independent, and put a stop to Putin’s dangerous military ambitions.
When we prioritise clean energy solutions, we not only contribute to peace in Ukraine but also take significant strides toward a sustainable and climate-resilient future. The moment demands bold decisions, and the choice for cleaner energy is a choice for peace and prosperity.
Using a two-pronged strategy, Europe and the USA can cut off Russia’s energy export market and more rapidly bring peace to Ukraine. A quicker clean energy buildout is one part, and the other is creating stronger sanctions. The existing sanctions have loopholes, but much about them has worked so far.
The US sanctions announced in November 2023 caused Russian energy firm Novatek’s shares to fall by five percent. After the sanctions, the traditionally Russia-friendly American firm Baker Hughes refused to further cooperate with Arctic LNG2.
The sanctions included companies related to the construction and logistics of Novatek’s massive Arctic LNG 2 project, and have curtailed shipping, even threatening the viability of one of Putin’s pet projects.
In the past year, certain EU nations, including Spain and Belgium, saw a notable uptick in their Russian LNG imports. These countries persist as crucial hubs for LNG distribution, ranking as the second and third-largest purchasers of Russian LNG.
The new package of sanctions by the EU to coincide with the anniversary of the war this week, should have included a complete ban on Russian LNG. By taking a concrete stand once and for all against Russian LNG, the EU can weaken Putin’s evil war economy, accelerating an end to the war and promoting a shift towards clean, renewable energy.
While the two-year mark of war on Ukraine is a tragedy, there is still much that can be done to dry up funding for Russia’s brutal war and help bring more peace to a world that seems too often like it is on the wrong path. Quickly building a clean energy revolution creates jobs, will save trillions by curtailing upcoming climate disasters, helps produce energy security, and supports peace in Ukraine.
What else we need is clear: global leaders across Europe and the USA must act now and create full and transparent sanctions against Russia’s energy economy that will make a real difference for the people of Ukraine.
Source: euobserver.com
