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EU Economy Chief Rules Out Return to Russian Gas and Oil

Gas Pipeline
Pipeline connecting regional gas supplies. [TechGolly]

Key Points:

  • European Commissioner Valdis Dombrovskis ruled out any return to cheap Russian fossil fuels to ease the energy crisis.
  • The ongoing war in Iran has triggered Europe’s second-largest energy crisis in five years.
  • United Kingdom Prime Minister Keir Starmer faced criticism after granting licenses to import fuel made from Russian crude.
  • Italian Prime Minister Giorgia Meloni urged Brussels to relax fiscal rules and treat energy security as a strategic defense emergency.

European Commissioner for the Economy Valdis Dombrovskis has ruled out any return to cheap Russian energy. He stated that the European Union has made a strategic choice to move away from Moscow’s gas and oil permanently. This decision comes despite the crushing energy crisis that currently weakens European households.

In an exclusive interview, Dombrovskis made it clear that Europe cannot afford to let Russia profit from the ongoing conflict in the Middle East. He explained that Russia is directly benefiting from the war in Iran. The conflict has pushed global energy prices higher, giving Moscow substantial windfall profits. Dombrovskis warned that easing sanctions to obtain cheaper oil or gas flows would only facilitate Russia’s hostile actions.

This strong stance from Brussels contrasts sharply with recent actions taken across the English Channel. The United Kingdom government recently published a controversial, open-ended license. This license allows British companies to import diesel and jet fuel made from Russian crude oil in third countries, such as Turkey and India. Because these countries purchase Russian crude at deeply discounted prices before refining it, the UK can access cheaper fuel.

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The UK government also issued a separate license enabling short-term service contracts with Russia’s Sakhalin-2 and Yamal liquefied natural gas (LNG) projects until January 2027. This sudden policy shift left Ukraine and its allies blind. The decision raised serious questions in Kyiv, especially since British Prime Minister Keir Starmer has positioned himself as one of Ukraine’s staunchest supporters. Downing Street later downplayed the incident, blaming the confusion on poor communication.

Dombrovskis reminded critics of the severe consequences of relying on hostile partners. He pointed out that back in 2022, Russia actively tried to use its massive fossil fuel supplies as a tool for economic blackmail and market manipulation. Europe paid a very heavy economic price for its deep dependence on Moscow. He declared that there is absolutely no point in returning to a failed system that brought Europe to its knees.

The current financial strain represents the second biggest energy crisis to hit the continent in the last five years, following Russia’s invasion of Ukraine. The ongoing war in Iran and military blockades in the Persian Gulf have choked off global oil flows. These supply issues will likely weaken Europe’s broader economy throughout the year. Despite the high costs, Dombrovskis assured the public that Europe faces no real risk of rolling blackouts this winter.

In response to the crisis, European Union lawmakers are moving quickly to cut the remaining ties with Russian energy. Parliament is currently pushing to formally ban all remaining Russian gas flows by the year 2027. They also want to permanently phase out oil imports much earlier than their previous timelines suggested.

Some European leaders want Brussels to take much more drastic action to support local economies. On Monday, Italian Prime Minister Giorgia Meloni sent a letter to European Commission President Ursula von der Leyen. Meloni urged the European Union to treat the current energy crisis exactly like a national defense emergency.

In her letter, Meloni argued that if Europe can relax its strict fiscal rules for military defense, it should show the same political courage for energy security. She stated that energy security must be recognized as a vital European strategic priority. She asked Brussels to activate special escape clauses to allow member states to spend more money supporting their struggling households.

Dombrovskis confirmed that the Commission is looking at policy options to support Italy and other struggling member states. However, he warned that any financial assistance must remain strictly temporary and highly targeted. As winter approaches, the European Union plans to stand firm. They will continue to navigate the energy crisis through conservation, green transition, and diversified suppliers rather than returning to Russian oil and gas.

EDITORIAL TEAM
EDITORIAL TEAM
Al Mahmud Al Mamun leads the TechGolly editorial team. He served as Editor-in-Chief of a world-leading professional research Magazine. Rasel Hossain is supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial expertise in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.