The Magazine for Asian Investors
Following the U.S. ban on imports of Russian oil, gas, and coal, all eyes are on Europe and whether Europe, which is heavily dependent on energy products, will follow the U.S. example. The question is not so much whether one wants to, but rather whether one can if Europe does not want to experience a major blackout.
According to Eurostat, most imports of fossil fuels come from Russia. Thus, 41% of natural gas is imported from Russia. The situation is similar for other energy sources such as coal or crude oil. Solid energy sources such as coal are imported from Russia at 46% and crude oil at 27%. This shows the high level of dependence.
Representatives of Europe’s largest industrialized nation, Germany, also see it that way. Chancellor Olaf Scholz again pointed to the problems that would arise if economic relations with Russia were broken off. For this reason, he said, the German government had already taken preparatory measures at the end of last year. But the work is complicated, he said.
Export Stop from the Russian Side?
Russia has already threatened that it will stop its exports to Europe if European sanctions are imposed on imports from Russia. So far, however, the Europeans do not consider this to be realistic. The reason is Russia’s dependence on the export business with raw materials.
In other words, the Europeans are dependent on energy imports from Russia, but the Russians are also dependent on exports to Europe. Therefore, Europe’s energy imports from Russia are unlikely to change for the time being. Even if this meets with sharp criticism from American and European citizens, hands are tied for the decision-makers.