US and EU Strike LNG Deal to Cut Europe’s Dependence on Russian Gas

The United States has agreed to supply 15 billion cubic meters of liquefied natural gas (LNG) to the European Union to help it transition out of using Russian gas.

Russia’s invasion of Ukraine has pushed fuel prices to record highs, worsening a pandemic-induced energy shortage in Europe. This has prompted the region to pledge cutting down its demand for Russia gas by two thirds this year and end all Russian fossil fuel imports by 2027.

Russia supplies around 40 percent of Europe’s gas.

“As the EU works to discontinue buying Russian gas well before 2030, it will also work to ensure additional EU market demand for 50 billion cubic meters of LNG from the United States annually by 2030,” U.S. President Joe Biden said in a joint briefing with European Commission President Ursula von der Leyen.

While senior U.S. officials have not disclosed how much of the supply to the EU will come from the U.S., observers noted that most of its exports to Europe will have to come from exports that could have gone elsewhere.

The move followed after Russia ordered the switch of gas contract payments to rubles in a move seen to be a retaliation to the West’s economic sanctions on the country.

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