EU Officials Explore Restarting Russian Gas Imports as Peace Talks Advance

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EU Officials Explore Restarting Russian Gas Imports as Peace Talks Advance
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European officials are debating the potential resumption of Russian pipeline gas imports as part of a potential peace settlement to end the war in Ukraine. While proponents argue it would lower energy prices and encourage negotiations, the idea has sparked backlash from Ukraine's allies who fear it would embolden Russia and undermine efforts to reduce reliance on Russian energy.

European officials are engaged in discussions regarding the potential resumption of Russia n pipeline gas sales to the European Union (EU) as a possible component of a peace settlement to end the war in Ukraine . Sources familiar with the discussions reveal that proponents of purchasing Russia n gas argue that it would alleviate high energy prices in Europe, incentivize Moscow to engage in negotiations, and provide both sides with a compelling reason to uphold a ceasefire.

However, even preliminary discussions about reopening Russian gas flows into Europe have ignited backlash from Ukraine's closest allies within the EU. Three officials privy to the talks confirmed that the idea has garnered support from certain German and Hungarian officials, along with backing from other capitals that view it as a means to decrease European energy costs. 'There is pressure from some big member states on energy prices and this is one way to bring those down, of course,' stated one official. Resuming exports to Europe would significantly bolster Moscow's revenue streams. Prior to the war, flows through pipelines from Russia constituted approximately 40% of the EU's total gas supply, with Germany being the largest importer. Donald Trump has called for an immediate end to the war, prompting discussions among Western capitals about the essential elements for a lasting agreement with Moscow. The US president has also threatened the EU with tariffs unless it increases its purchases of American liquefied natural gas (LNG), which is more expensive than piped gas. The proposition of resuming pipeline sales from Russia has incensed Brussels officials and diplomats from several Eastern European countries, many of whom have dedicated the past three years to reducing the volume of Russian energy imported into the bloc. 'It's madness,' remarked one of the officials. 'How stupid could we be to even think about that as an option?' Ukrainian President Volodymyr Zelenskyy stated on Wednesday: 'Ending the hot phase of the war is critical . . . Diplomatic solutions are preferable — fewer casualties, fewer losses.' His office did not respond to a request for comment regarding the discussion about resuming Russian gas purchases.The reemergence of the debate on gas sales has unsettled certain US LNG exporters seeking to finalize long-term supply agreements with European companies. They apprehend that any restart of Ukrainian transit could render their products less competitive, according to two of the officials. One of the European Commission's leading energy officials, Ditte Juul Jørgensen, is currently in the US meeting with LNG exporters this week for talks that will encompass long-term potential supplies. The EU's stated objective is to eliminate all Russian fossil fuels from the bloc's energy system by 2027. The EU's energy commissioner, Dan Jørgensen, is scheduled to present a plan outlining the steps to achieve this goal in March. However, the dire circumstances faced by the EU's heavy industries have intensified the need for European countries to procure cheaper energy sources. Gas costs in Europe are typically three to four times higher than in the US. Piped gas from Russia constituted about 10% of total supply in 2024 but has been halved since a transit contract permitting flows to reach the EU through Ukraine ended in January. The remaining pipeline carrying Russian gas to the bloc is the TurkStream line through Turkey, which supplies Hungary with approximately 7.5 billion cubic meters of gas. Budapest, along with the pro-Russian government in Slovakia, have been advocating for the EU to exert pressure on Ukraine to restart gas transit. 'In the end, everybody wants lower energy costs,' said a senior EU official. Slovakia, directly connected to the Ukrainian pipeline that halted Russian gas deliveries, faces an annual loss of €500 million in transit revenues. Gary Mazzotti, chief executive of EP Infrastructure, which operates the Slovak portion of the pipeline, told the FT that a potential peace agreement between Trump and Russia would almost certainly lead to discussions on resuming Russian gas supplies. 'When that day of peace comes, I’m sure there will be significant discussions about the right levels of gas supply to Europe and where it should come from,' Mazzotti said

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