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Indebta > News > EU debates return to Russian gas as part of Ukraine deal
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EU debates return to Russian gas as part of Ukraine deal

News Room
Last updated: 2025/01/30 at 1:11 AM
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European officials are debating whether Russian pipeline gas sales to the EU should be restarted as part of a potential settlement to end the war against Ukraine, according to people familiar with discussions.

Advocates of buying Russian gas argue it would bring down high energy prices in Europe, encourage Moscow to the negotiating table, and give both sides a reason to implement and maintain a ceasefire.

But raising the idea of reopening flows of Russian gas into Europe, even in preliminary discussions, has already sparked a backlash among Ukraine’s closest allies in the EU.

Three of the officials briefed on the talks said the idea had been endorsed by some German and Hungarian officials, with support from other capitals that saw it as a way to reduce European energy costs. 

“There is pressure from some big member states on energy prices and this is one way to bring those down, of course,” said one official.

Resuming exports to Europe would significantly boost Moscow’s revenues. Before the war, flows through pipelines from Russia accounted for about 40 per cent of the EU’s total supplies, with Germany being the largest importer. 

Donald Trump has demanded an end to the war “soon”, prompting discussions among western capitals about the elements needed for a lasting agreement with Moscow. The US president has also threatened the EU with tariffs unless it buys more liquefied natural gas from America, which is more expensive than piped gas.

Floating the resumption of pipeline sales from Russia has infuriated Brussels officials and diplomats from some eastern European countries, many of whom have spent the past three years working to reduce the amount of Russian energy being imported into the bloc.

“It’s madness,” said one of the officials. “How stupid could we be to even think about that as an option?”

Ukrainian President Volodymyr Zelenskyy said on Wednesday: “Ending the hot phase of the war is critical . . . Diplomatic solutions are preferable — fewer casualties, fewer losses.” His office did not respond to a request for comment on the discussion about resuming Russian gas purchases.

The revival of the debate on gas sales has unsettled some US LNG exporters seeking to sign long-term supply deals with European companies. They fear that any restart of Ukrainian transit could make their products uncompetitive, according to two of the officials.

One of the European Commission’s top energy officials Ditte Juul Jørgensen is in the US meeting LNG exporters this week, for talks that will touch on long-term potential supplies.

The EU’s stated target is to rid the bloc’s energy system of all Russian fossil fuels by 2027. The EU’s energy commissioner Dan Jørgensen is due to present a plan for hitting that goal in March.

But the dire straits of EU’s heavy industries have increased the need for European countries to source cheaper energy. Gas costs in Europe are typically three to four times higher than in the US.

Piped gas from Russia made up about 10 per cent of total supply in 2024 but has halved since a transit contract permitting flows to reach the EU through Ukraine ended in January.

The remaining pipe bringing Russian gas to the bloc is the TurkStream line through Turkey, which provides Hungary with about 7.5 billion cubic metres of gas. Budapest, along with the pro-Russian government in Slovakia, have been lobbying the EU to pressure Ukraine into restarting the gas transit.

“In the end, everybody wants lower energy costs,” said a senior EU official.

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News Room January 30, 2025 January 30, 2025
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