EU countries imported more gas from Russia than from the United States in the second quarter, according to data from a Brussels-based think tank.
The increase in imported Russian gas marks a return to the situation that existed before the country’s invasion of Ukraine, when Russia was a key supplier of energy to the EU.
“In the second quarter of 2024, the EU imported 12.8 billion cubic meters (bcm) of natural gas from Russia, which was larger than total imports from America (12.2 bcm),” Ben McWilliams, an affiliate fellow at Bruegel, the think tank behind the report, told media outlet Euractiv.
“This was the first time in nearly two years that Russian gas imports have outpaced those from America,” he added.
“This shift is largely due to a recent decline in American LNG imports.” European gas storage facilities now averaging 92.4% capacity and lower demand during the summer has led to a reduction in “spot” purchases of American gas.
Countries such as Austria, Hungary, and Slovakia are committed to long-term, rigid contracts with Russian gas suppliers. In contrast, the U.S. LNG market offers more flexibility, making demand a more significant influence.
About two-thirds of Russian gas imports are delivered through the Ukraine transit and TurkStream pipelines, directly supplying EU customers. The remaining third of the 12.8 bcm is transported as LNG, mainly to ports in Spain, Belgium, and France.
While a bloc-wide ban on Russian gas has been politically unachievable since 2022, with some countries threatening to veto such a measure, a 2023 reform of the EU’s gas market rules now allows individual member states to impose their own bans.
“In the second quarter of 2024, the EU imported 12.8 billion cubic meters (bcm) of natural gas from Russia, which was larger than total imports from America (12.2 bcm),” Ben McWilliams, an affiliate fellow at Bruegel, the think tank behind the report, told media outlet Euractiv.
“This was the first time in nearly two years that Russian gas imports have outpaced those from America,” he added.
“This shift is largely due to a recent decline in American LNG imports.” European gas storage facilities now averaging 92.4% capacity and lower demand during the summer has led to a reduction in “spot” purchases of American gas.
Countries such as Austria, Hungary, and Slovakia are committed to long-term, rigid contracts with Russian gas suppliers. In contrast, the U.S. LNG market offers more flexibility, making demand a more significant influence.
About two-thirds of Russian gas imports are delivered through the Ukraine transit and TurkStream pipelines, directly supplying EU customers. The remaining third of the 12.8 bcm is transported as LNG, mainly to ports in Spain, Belgium, and France.
While a bloc-wide ban on Russian gas has been politically unachievable since 2022, with some countries threatening to veto such a measure, a 2023 reform of the EU’s gas market rules now allows individual member states to impose their own bans.
For example, Austria, which remains heavily dependent on Russian gas, recently made a non-binding pledge to “phase out Russian natural gas supplies by 2027” in its 2024 national security strategy.
Impact on Russia
The EU significantly reduced its imports of Russian fossil fuels, which peaked at $16 billion per month in early 2022, to around $1 billion per month by the end of 2023. The largest portion of this decrease was due to cuts in oil imports, Bruegel reported.
Despite this sharp decline, the impact on Russia’s trade balance has been relatively modest.
Although Russia no longer benefits from the exceptionally high export earnings it enjoyed in early 2022, its revenue from mineral fuel exports has remained comparable to 2019 levels. This is largely due to a shift in oil exports toward China, India, and Turkey.
The EU imposed an embargo on the import of Russian crude oil in December 2022, followed by a ban on oil products, such as petrol and diesel, in February 2023.
Prior to these sanctions, Russia supplied 25% of the EU’s crude oil and 40% of its diesel imports. To offset the reduction in Russian imports, the EU has increased its oil imports from a wider range of countries.
Natural gas
The EU has not implemented significant sanctions on Russian natural gas. However, Russia has reduced its gas supplies to the EU, a move that may prove detrimental to its own long-term interests.
Even before the invasion, Gazprom had begun cutting supplies to European customers in the summer of 2021, leaving the gas storage facilities it managed in the EU nearly empty by autumn of that year.
Following the invasion, Gazprom further reduced exports to the EU in response to some countries’ refusal to pay in rubles.
Reacting to declining Russian gas imports, the EU increased its imports of LNG and reduced overall gas demand. The share of LNG in the EU’s total gas imports rose from 20% in 2019 to 40% in 2023, largely due to a fivefold increase in imports from the United States, Bruegel reported.
Although imports of Russian LNG also grew, this increase amounted to less than a tenth of the gas previously supplied through the Nord Stream pipeline. Compared to the average demand from 2019 to 2021, EU natural gas consumption was 12% lower in 2022 and 19% lower in 2023.
Impact on Russia
The EU significantly reduced its imports of Russian fossil fuels, which peaked at $16 billion per month in early 2022, to around $1 billion per month by the end of 2023. The largest portion of this decrease was due to cuts in oil imports, Bruegel reported. Despite this sharp decline, the impact on Russia’s trade balance has been relatively modest.
Although Russia no longer benefits from the exceptionally high export earnings it enjoyed in early 2022, its revenue from mineral fuel exports has remained comparable to 2019 levels. This is largely due to a shift in oil exports toward China, India, and Turkey.
The EU imposed an embargo on the import of Russian crude oil in December 2022, followed by a ban on oil products, such as petrol and diesel, in February 2023.
Prior to these sanctions, Russia supplied 25% of the EU’s crude oil and 40% of its diesel imports. To offset the reduction in Russian imports, the EU has increased its oil imports from a wider range of countries.
Natural gas
The EU has not implemented significant sanctions on Russian natural gas. However, Russia has reduced its gas supplies to the EU, a move that may prove detrimental to its own long-term interests. Even before the invasion, Gazprom had begun cutting supplies to European customers in the summer of 2021, leaving the gas storage facilities it managed in the EU nearly empty by autumn of that year.
Following the invasion, Gazprom further reduced exports to the EU in response to some countries’ refusal to pay in rubles.
Reacting to declining Russian gas imports, the EU increased its imports of LNG and reduced overall gas demand. The share of LNG in the EU’s total gas imports rose from 20% in 2019 to 40% in 2023, largely due to a fivefold increase in imports from the United States, Bruegel reported.
Although imports of Russian LNG also grew, this increase amounted to less than a tenth of the gas previously supplied through the Nord Stream pipeline. Compared to the average demand from 2019 to 2021, EU natural gas consumption was 12% lower in 2022 and 19% lower in 2023.
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