From August 2022 to January 2023, gas consumption in Europe fell by 19% compared to the average for the same period over the past five years. Against this background, the income of the Russian Federation from the sale of energy resources is sharply declining.
The European Union is no longer dependent on Russian oil and gas. Thus, 80% of the export of “blue fuel” from the Russian Federation was completely replaced with supplies from the USA and Norway. This was stated by the President of the European Commission Ursula von der Leyen.
It is noted that the export of Russian gas to Europe for 8 months decreased by 80%.
“Of course, good friends, such as the United States and Norway, helped us by supporting us with supplies of liquefied and piped gas,” said Ursula von der Leyen.
According to Eurostat, from August 2022 to January 2023, gas consumption in Europe decreased by 19%, compared with the average for the same period over the past five years. And some European countries have reduced gas consumption by 40-50%. For example:
Finland – by 57.3%; Lithuania – by 47.9%; Sweden – by 40.2%.
It should be noted that Russia still has the opportunity to sell its energy resources to third countries, although the income from such sales is limited, since the aggressor country is forced to do this with a significant discount for each barrel.
Meanwhile, Russia’s oil and gas revenues have fallen 38% this year as price caps and Western sanctions curtail trade in Moscow’s most lucrative export. In January, revenues from the sale of these energy products amounted to $18.5 billion, compared with $30 billion in the same period in 2022.
Thus, according to Reuters, after restrictions from 27 countries in response to Russian aggression in Ukraine, plus oil restrictions of $60 per barrel imposed by the G7 countries, Russian Urals oil is sold at a large discount in relation to the brand Brent.
In addition, the Russian Federation was forced to start selling international reserves to cover the deficit that arose against the backdrop of expenses due to the invasion of Ukraine. In total, Moscow received $154.68 billion from oil and gas exports in 2022.
Recall that Germany had previously refused to cooperate with Russia in the energy sector. As Chancellor Olaf Scholz stated, the country refused gas, oil and coal from the Russian Federation.
Focus also wrote that the warm winter of 2022-2023 saved Europe from an energy crisis. Due to the abnormally warm winter this year, all crisis factors in Europe have weakened. Energy prices have plummeted, natural gas inventories have soared, as have LNG supplies, and nuclear power plants have gradually returned to the grid after shutdowns for maintenance.
