Right when the Russian federation declared its military operations in Ukraine around February, the US led western union levied unprecedented sanctions on Russia. The goal of the heavyweight sanctions was to obliterate the Russian economy and put a cap on fossil fuels.
Six months later, Western economies are taking heavy inflationary hits as Russia has since refocused its key economic offerings away from Europe. Some of these key components of Russian economy are fossil fuel – gas, oil, coal, uranium and other special energy commodities which Russia has an enviable unilateral control in the Eurasian hemisphere. A look at Europe’s energy imports shows that Russia supplies most of Europe with oil, gas and coal.
Russia has now looked towards East and Asia for reliable partners and its friendly nations. This has removed cheap gas from European market, forcing them to source for gas from other places, thereby causing upward tick in price as the commodity becomes more scarce. Supplies are no longer satisfying demand. As it stands, the US and other gas producers around the world can’t cater to Europe’s gas needs, not even in 10yrs time.
Several European economies are reportedly shrinking now, with the Euro currency now worth less than it was before the Russian incursion into Ukraine after Vladimir Zelensky failed to implement the Minsk Agreement. When Europe was dishing out cold sanctions to cripple Russia, they forgot they were not energy sufficient, and that Russia supplied more than 40% of their energy resources at the cheapest price ever.
• Terrible winters will hit Europe if gas price continue to rise
With the sanctions and freezing of Russia’s foreign assets, a tit for tat game was adopted by the Kremlin. As you would imagine, the fossil fuels are at the core of it. Vladimir Putin has therefore used the Ruble for Gas scheme to make Europe bend the knee, a fact EU leaders are admittedly ashamed of but can’t do anything about, because who doesn’t want cheap gas? But, despite this, the sanctions remain. Because energy is at the root of the industrial capacity of any modern country, a shift in price of fossil fuels automatically affects everything. By unilaterally imposing sanctions on Russia, EU backed themselves into a corner.
The problem with an interconnected world is that it has brought the continents together and enhanced international commerce. Unilateral decisions by key sectors of the international community will always have reverberated consequences across board. In the case of European Union countries, the storm is not getting calmer any time soon if the reports we are getting is to be believed.
“We have to stop this madness that is happening right now on energy markets,” Austria’s Chancellor Karl Nehammer said. Austria has currently downgraded to using coal. They’re not alone. Netherland, Germany and other European Union countries have restarted coal power stations to substitute for Russian gas; it’s still not enough. Europe is growing darker now as governments issue policies and guidelines on rationing gas. Quite unthinkable just a few months ago.
According to reports, EU leaders are planning to withdraw visa agreements with Russia. For some reason, they continue to peddle their false narratives of the ongoing crisis despite being repeatedly exposed by their citizens (with Boris Johnson, Emmanuel Macron, Italian PM Draghi and their economy paying the costly price). Regardless of the fact that the US, EU and allies created the energy crisis in the first place, European Union is doubling down on their efforts to escalate Russophobia.
European Union will likely face severe terrible winters if nothing is done to reduce gas prices and amicably resolve the issue in Ukraine. Russia may have a different opinion now though because, and let’s face it, they’re profiteering hugely from EU’s miscalculation. According to recent updates from the Kremlin, Russia can now afford to completely shut off its gas pipes to Europe for one year without feeling a thing so long as prices of energy commodities continue the way they are. Can Europe afford to completely go dark and boom back to the dark ages of destroying the environment with coal? Of course they can, they already reverted back to coal after years of championing clean energy. Question is, how far can they go?
Just like we reported severally in the past, the NATO led west is responsible for the energy crisis rocking their world. Nobody wins in war, but they have helped fasttrack a new change in the world order. The war in Ukraine will end, but the shattered relations will take centuries to repair.