伊-Hungary, etc. move to accommodate the demands of Russia… “EU imports 83 trillion won from Russia after invasion”
EU natural gas price surged 24% during the day, “GDP could decrease by up to 5%”
Russian President Vladimir Putin threatened to escalate war if a third country gets involved in the Ukraine crisis. As Russia shuts off gas pipelines to Poland and Bulgaria today, divisions within Europe are also deepening over the cessation of energy imports from Russia. Britain’s Financial Times (FT) said the cut off gas supplies to the two countries is Russia’s strategy to ‘divide and rule’ Europe using energy as a weapon. In the aftermath of this, there are concerns that the current situation will continue for a long time as Russia’s war funds do not dry up, such as a surge in international natural gas prices.
Polish prime minister visits gas plant Polish Prime Minister Matteusi Moraviecki holds a press conference in front of the Gazsystem plant near the capital Warsaw after Russia stopped supplying natural gas on the 27th. Rembel Schizna = AP News○ Split Europe due to the weaponization of Russian energy
According to the Lianovosti news agency, Putin said in a speech to the city council of St. Petersburg on the 27th, “If the outside intervenes in the situation in Ukraine, we will respond as fast as lightning. “We have all the means for retaliation, and we will use them when necessary.” Dmitry Peskov, spokesman for the Kremlin (President’s Office), said, “If we refuse to pay rubles for Russian natural gas, we could cut off supply to other European countries.”
As a result, internal divisions within Europe over Russia’s energy imports are growing. Reuters and others reported that at least 14 European companies, including Italy’s largest energy company Eni, German energy company Uniper, and Austrian oil company OMV, have already paid for Russian gas in rubles or are trying to open an account with a Russian bank. Hungarian Foreign Minister Siyarto Peter said, “Russia is supplied with 85% of gas and 65% of oil. He has not found an alternative energy source for Russia,” he said, adding that he would accept the ruble payment request.
The UK, which was at the forefront of sanctions against Russia along with the US, is also not free from criticism of division. Greenpeace, an international environmental group, revealed that Britain imported 1.9 million barrels of crude oil worth $276 million (about 345 billion won) after the Russian invasion of Ukraine on February 24. The Guardian, a British daily, also pointed out that even after Russia invaded, it sold 62 billion euros (about 83 trillion won) of energy to the EU, and that the Russian government’s income also increased due to rising international energy prices.
○ EU economy hit by soaring natural gas price
On the 27th, the price of natural gas in the EU was 107.43 euros per megawatt-hour (MWh), up 4.1% from the previous day. At one point during the day, it surged 24%. The euro’s value against the U.S. dollar also hit $1.0515 during the day, its lowest in five years since May 2017.
Given that major countries, including Germany, Europe’s largest economy, are highly dependent on Russia for energy, there are concerns that the EU’s economic growth will slow if concerns about supply disruption grow. The Federal Bank of Germany has warned that a lack of Russian energy could reduce the country’s gross domestic product (GDP) by up to 5%. On the 27th, the German government lowered its growth forecast for this year from 3.6% to 2.2%.
The United States and the West have taken action. The U.S. Department of Energy announced on the 27th that it has allowed domestic energy companies such as ExxonMobil to export an additional 500 million cubic feet (about 14.15 million m³) of natural gas, which can heat 2.5 million homes a day. US President Joe Biden requested an additional budget for Ukraine aid from the US Congress on the 28th and will visit the Lockheed Martin plant in Alabama on the 3rd of next month. This is to tour the manufacturing facilities of the ‘Javelin’ missile, which is demonstrating its power in repulsing Russian missiles. U.S. Secretary of State Tony Blincoln has suggested additional sanctions against Russia.
EU Commission President Ursula von der Leyen also said, “We have supplied alternative energy to Poland and Bulgaria. She said Russia’s attempts to sow the seeds of division among EU member states have again failed,” she said, urging member states not to pay for gas in rubles.
Paris = Correspondent Yunjong Kim zozo@donga.com
Washington = Byung-ki Moon, Correspondent weappon@donga.com
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