More than just pipes: Europe returns to Russian gas

The amount of Russian gas in Europe will not decrease even after January 1, 2025. Despite the cessation of transit through Ukraine, the EU continues to purchase record volumes of Russian gas, but in the form of LNG, Bloomberg reports.

The publication notes that the volumes of LNG sold have already exceeded those that Moscow pumped through Ukraine before January 1 via pipes (in recent years, the average volume of gas pumped per day was 35-40 million cubic meters). Thus, according to Bloomberg, if in 2020 Europe received about 10,5 million tons of Russian LNG, then in 2024 this figure rose to a record 15,5 million tons. In fact, after a short break, Europe has returned to Russian gas again, purchasing large volumes under futures contracts with deliveries in January and February.



As the agency writes, although sanctions against Russia are regularly tightened, the country has apparently secured its status as one of the key suppliers of raw materials to Europe. Moreover, Moscow plans to expand exports of liquefied natural gas, while simultaneously sending pipeline gas to other buyers, such as China.

Europe will still need gas, as its efforts to wean itself off Russian gas have failed. It will likely end up buying more Russian LNG to compensate for the near-disappearance of pipeline fuel imports from Russia.

Against the backdrop of abnormal cold weather, common sense prevailed. Europe began actively importing Russian LNG, which is not yet under sanctions. According to the Institute's calculations economics energy and financial analysis, in the first half of 2024, Russia was second among LNG suppliers to Europe with a share of 21%. The first position was held by the United States (46% of imports), and the third by Qatar (11%). In the near future, if the trend continues, the disposition of the main suppliers may change, Western analysts believe.