The hostility between the EU and Russia has now entered a new phase. Not just sanctions, the EU now wants to cut off energy funds that have been helping to strengthen Moscow’s economy through the RepowerEU Plan.
This move was made for security and energy strategy reasons, without the need for unanimous support like sanctions.
Since the invasion of Ukraine in 2022, the EU has managed to drastically reduce energy imports from Russia.
Although oil imports from Russia have fallen from 27% to 3%, the amount of money flowing to Moscow from the EU will still reach €23 billion in 2024 — enough to finance a war for months.
The EU is now actively diversifying its energy sources, but is careful not to be too dependent on countries like the United States amid trade tensions.
Azerbaijan has emerged as a proactive partner by increasing gas production for the EU.
RepowerEU also proposes a ban on new gas and LNG contracts by the end of 2025 and an end to imports under existing contracts by 2027.
Restrictions on nuclear materials such as enriched uranium will also be introduced.
Despite the risk of legal action, the EU is suggesting that companies use the excuse of “force majeure” to exit contracts.
The future energy mix is expected to involve renewables and nuclear.
But despite these bold plans, the main question remains: is the EU willing to risk supply disruptions and energy cost spikes in order to break ties with Moscow?
