The EU’s decision to end reliance on inexpensive Russian fossil fuels has had significant economic consequences, the EU Commission President has acknowledged.
European Commission President Ursula von der Leyen admitted that the disruption of cheap energy supplies from Russia has caused a sharp increase in energy prices across the EU.
Speaking at the World Economic Forum in Davos on Tuesday, von der Leyen acknowledged that the loss of Russian energy supplies has worsened the bloc’s energy crisis. She stated that “Freedom came at a cost. Households and businesses experienced extremely high energy costs, and many are still facing high bills.”
Before 2022, the EU received 45% of its gas and 50% of its coal from Russia, and Russia was a major oil supplier. She argued that “This energy seemed inexpensive, but it left us vulnerable to coercion.”
Von der Leyen also asserted that Russian President Vladimir Putin “cut off our gas supplies” following the outbreak of the Ukraine conflict in February 2022.
“Our gas imports from Russia have decreased by about 75%. We now import only 3% of our oil from Russia, and no coal whatsoever,” she said.
The EU has implemented extensive sanctions against Russia, targeting its industrial, energy, and financial sectors. In 2022, Russia halted gas flows to Germany via the Nord Stream 1 pipeline, citing routine maintenance and issues with the delivery of Western-made equipment due to sanctions.
In September 2022, the Nord Stream pipelines, running under the Baltic Sea, were sabotaged. While responsibility remains unclaimed, Russia has alleged US and UK involvement, a claim both countries deny.
In her Davos address, von der Leyen suggested that the EU could further replace Russian supplies with renewable and nuclear energy. She stated that “We must invest in next-generation clean energy technologies, such as fusion, enhanced geothermal, and solid-state batteries.”
Hungary and Slovakia have increasingly urged the EU to reconsider its sanctions policy and pursue a diplomatic resolution to the Ukraine conflict.
On January 1, Ukraine stopped the transit of Russian gas to EU countries through Soviet-era pipelines after deciding not to renew a deal with Gazprom, the Russian state-owned gas operator. Slovak Prime Minister Robert Fico threatened to suspend humanitarian aid and cut electricity supplies to Ukraine unless Kiev resumed transit.