In response to Russia’s invasion of Ukraine in 2022, both the United States and the European Union (EU) imposed substantial sanctions with the aim of severely impacting the Russian economy. However, these decisive measures come with potentially complicated consequences due to Russia’s role as a major global exporter of energy products and Europe’s largest supplier of these fuels.
As of October 2021, Russia supplied a significant 25% of all oil imported by the EU, which is three times more than the second-largest trade partner. The policies and circumstances that have led to this energy dependency have come under intense scrutiny in recent times.
To provide a visual representation of this energy data, the infographic below offers insights derived from Eurostat. If you have specific questions or require further information related to this topic, please feel free to provide more details, and I’ll be happy to assist you.
Energy dependency, by country
Let’s begin by comparing the energy dependence of each European Union (EU) member in both the year 2000 and 2020, with 2020 being the latest available data. This metric reveals the extent to which a country relies on energy imports to meet its energy requirements.
It’s worth noting that Denmark’s value of -35.9% for the year 2000 indicates that the country was a net exporter of energy during that time.
Over the span of these two decades, the average energy dependence of the EU-27 member countries has increased slightly, rising from 56.3% in 2000 to 57.5% in 2020. This suggests that EU member states collectively became marginally more reliant on energy imports during this period.
Where do EU’s energy imports come from?
Looking further into energy imports reveals that Russia is the main supplier of crude oil, coal, and natural gas. Continue below for more details.
Crude Oil Imports
The EU imports more crude oil from Russia than the next three countries combined
This shouldn’t come as a surprise, as Russia was the world’s third largest producer of oil in 2020. The country has several state-owned oil companies including Rosneft and Gazprom.
Coal Imports
Coal-fired power plants are still being used across the EU, though most member states expect to completely phase them out by 2030. Russia has the second largest coal reserves in the world. In 2020, it mined 328 million metric tons, making it the sixth largest producer globally.
Natural Gas Imports
Natural gas is commonly used to heat buildings and water. A majority of the EU’s supply comes from Russia via the Nord Stream series of pipelines.
Nord Stream 1 is the longest sub-sea pipeline in the world and was completed in 2011. It starts from the Russian city of Vyborg and connects to the EU through Germany.
Nord Stream 2 is a recently constructed expansion which was expected to double the project’s capacity. Germany has since halted the approval process for this pipeline in response to Russia’s 2022 invasion of Ukraine.
What happens now?
The situation following Russia’s announcement of export bans and Western sanctions has raised significant concerns, particularly in Europe, where gas prices have surged amid fears of potential disruptions in Russian natural gas supplies. Such a disruption would have adverse consequences for both consumers and businesses.
In early March 2022, both the European Commission and the International Energy Agency (IEA) introduced proposals aimed at reducing Europe’s energy dependency, especially on Russia. European Commission President Ursula von der Leyen emphasized the importance of becoming less reliant on Russian oil, coal, and gas, given the explicit threats posed by the supplier.
We must become independent from Russian oil, coal and gas. We simply cannot rely on a supplier who explicitly threatens us.
Ursula von der Leyen, President of the European Commission
However, completely severing ties with a major energy supplier like Russia poses significant challenges, as few countries have the immediate capacity or willingness to replace Russian imports.
The proposals also explored options for increasing Europe’s domestic energy production. Notably, the European Commission’s report did not include nuclear power, as nuclear remains a polarizing and contentious topic in Europe, with some countries supporting it and others opposing it for various reasons.
The path forward for Europe involves a delicate balancing act between reducing energy dependence on Russia, ensuring a stable energy supply, and addressing environmental and political considerations, including the role of nuclear power. This complex situation requires careful planning and international cooperation to achieve energy security and sustainability in the region.
Source: Energy data from Eurostat and Visual Capitalist
