The U.S. President Joe Biden struck a deal with the European Union to supply liquefied natural gas (LNG) to meet the continent’s energy needs. The deal comes amidst efforts by European countries to wean themselves off Russian energy exports in the wake of the Russia-Ukraine war.
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Under the U.S.-EU LNG deal, the United States will supply 15 billion cubic meters (bcm) of LNG to the EU this year. Further, the EU will import additional LNG of at least 50 bcm until 2030 from the U.S.
This is expected to reduce Europe’s dependence on Russian energy exports and thus neutralise the Kremlin’s influence on Europe to a significant extent.
It should be noted that Europe has been at the mercy of Russian energy exports which has limited its response to Russia’s invasion of Ukraine due to the fear that Russia could cut off its energy exports to Europe.
Gas prices in Europe rose sharply even before the Russian invasion and a drop in supplies from Russia could make the situation even worse. This has left the EU vulnerable, so much that the West hasn’t imposed sanctions on EU’s energy imports from Russia.
Europe relies on Russian exports to meet about 40% of its natural gas requirements and about a quarter of its crude oil needs. Germany and many countries in Eastern Europe depend on Russia to meet more than 80% of their natural gas needs.
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