The network of Russia’s oil and gas pipelines, and electricity grid is holding Europe and the EU on the jugular.
Different levels of dependence on its energy mix leave many EU and non-EU nations nervous.
This is a delicate balance, especially with the Russian military invasion of Ukraine.
Or so it seems, but with the EU and the cluster of NATO countries, calling Putin’s bluff will sooner or later be the case.
Else, the Russian President would ride roughshod on the entire continent.
While this is not exactly so, many countries are now jittery of what Putin will do to those who he considers hostile.
Germany, Belgium, Denmark, France, Finland, Greece, Netherlands and Italy are neck-deep in consuming Russia’s oil. Others include Norway, Portugal, Spain and Sweden among others.
This dependence of EU countries on Russia’s Oil and Gas, condensate and fuel oils continue to make them more vulnerable in light of the present military situation in Ukraine.
Gas prices in the Q1 of 2021 hit above $30 US dollars/ MMbtu due to low storage levels in Europe.
The price came down to $27 per MMBtu in the middle of first quarter 2022. However, the panic in many European countries as a result of the Russian invasion drove prices up. Volatility remains the characteristic of the market while the conflict and Putin’s grandstanding last.
Sanctions against Putin’s Russia by the West and other countries will play a great role in determining what supply and price is available.
Russian exports to EU-28
In spite of the Covid-19 pandemic, trade between Russia and the Euro-28 continues to be active. About $67 billion worth of mineral fuel and fuel oil were exported to its European trading Partners.
The Netherlands purchased about $42 billion worth of goods from Russia.
For Germany, consumption of Russia’s natural gas placed it as the leading consumer in the EU. Aside from the Nord stream network of gas pipelines to Germany and other EU Nations, there was a serious plan to have Russia’s Gazprom build Nord 2 stream.
This is aimed at increased gas consumption and distribution.