The European Union is struggling to move away from Russian oil and gas and is entering the winter season with low gas reserves, according to a report from the European Court of Auditors cited by Reuters.
Auditors note that the EU is not investing enough to meet its goals of fully replacing Russian energy with diversified fossil‑fuel supplies, expanding renewable energy sources, and developing the energy infrastructure needed to increase electricity flows between member states in the coming years.
Since the start of Russia’s full‑scale war against Ukraine in 2022, the EU has gradually reduced its imports of Russian fuel. Due to sanctions on seaborne oil, the EU has virtually halted imports of Russian crude oil, while the share of Russian gas in total EU gas imports has fallen from 45% to 12%.
Energy risks ahead of winter
Auditors point out that the EU’s plan to phase out Russian energy is stalling just as Europe’s energy security is once again threatened by unrest in the Middle East.
According to Gas Infrastructure Europe, EU gas storage facilities are only 67% full, compared to 80% at this same time last year. Europe is facing difficulties filling its reserves amid global supply constraints linked to the war in Ukraine.
Analysts warn that low stock levels could lead to a sharp rise in prices this winter. These risks are compounded by EU plans to completely ban imports of Russian LNG starting January 1, 2027.
The European Commission initially estimated that the plan to phase out Russian energy would require approximately 300 billion euros in investment and allocated funding from the EU budget. However, auditors note that member states have committed only 54.3 billion euros of that amount.
This may indicate that the Commission miscalculated the investment needs or that member states are struggling to implement the plan.
Situation with production in Russia
As reported by UNIAN, Russia has halted gas production in the Black Sea following attacks by Ukraine. The company «Chornomornaftogaz» has also lost its status as a systemically important enterprise in occupied Crimea.
According to Russian officials, «Chornomornaftogaz» was removed from the list of systemically important enterprises due to failure to meet required targets for production, revenue, employment, and other parameters.
Furthermore, Reuters reports that Russia expects oil production to fall to a 17‑year low. Crude oil production is expected to reach 500 million tons next year, which is 16 million tons less than previously forecast.
Source: UNIAN
