EU Chief Warns of Danger of Complete Cut-off of Russian Gas

European Commission President Ursula von der Leyen delivers her speech at the European Parliament during the presentation of the program of activities of the Czech Republic's EU presidency, Wednesday, July 6, 2022 in Strasbourg, eastern France. (AP)
European Commission President Ursula von der Leyen delivers her speech at the European Parliament during the presentation of the program of activities of the Czech Republic's EU presidency, Wednesday, July 6, 2022 in Strasbourg, eastern France. (AP)
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EU Chief Warns of Danger of Complete Cut-off of Russian Gas

European Commission President Ursula von der Leyen delivers her speech at the European Parliament during the presentation of the program of activities of the Czech Republic's EU presidency, Wednesday, July 6, 2022 in Strasbourg, eastern France. (AP)
European Commission President Ursula von der Leyen delivers her speech at the European Parliament during the presentation of the program of activities of the Czech Republic's EU presidency, Wednesday, July 6, 2022 in Strasbourg, eastern France. (AP)

European Commission chief Ursula von der Leyen said Wednesday that the 27-nation European Union needs to make emergency plans to prepare for a complete cut-off of Russian gas in the wake of the Kremlin’s war in Ukraine.

The EU has already imposed sanctions on Russia, including on some energy supplies, and is gearing away from Kremlin-controlled deliveries. But the head of the EU's executive branch said the bloc needed to be ready for shock disruptions coming from Moscow.

"We also need to prepare now for further disruption of gas supply and even a complete cut-off of Russian gas supply," von der Leyen told the EU legislature in Strasbourg, France.

She said a dozen members have already been hit by reductions or full cuts in gas supplies as the political standoff with Moscow over the Ukraine invasion intensifies.

"It is obvious: Putin continues to use energy as a weapon. This is why the Commission is working on a European emergency plan," she said. "We need to make sure that in case of full disruption, the gas flows towards where it is most needed. We have to provide for European solidarity."

European Union countries already agreed last month that all natural gas storage in the 27-nation bloc should be topped up to at least 80% capacity for next winter to avoid shortages during the cold season. The new regulation also says underground gas storage on EU soil will need to be filled to 90% capacity before the 2023-24 winter.

The war in Ukraine has prompted the 27-nation bloc to rethink its energy policies and sever ties with Russian fossil fuels. Member countries have agreed to ban 90% of Russian oil by year-end in addition to a ban on imports of Russian coal that will start in August.

The EU has not included gas - a fuel used to power factories and generate electricity - in its own sanctions for fear of seriously harming the European economy. Before the war in Ukraine, it relied on Russia for 25% of its oil and 40% of its natural gas.

To slash its use of Russian energy, the European Commission has been diversifying suppliers.

"And our efforts are already making a big difference," von der Leyen said. "Since March, global LNG exports to Europe have risen by 75% compared to 2021. LNG exports from the US to Europe have nearly tripled."

In the meantime, the average monthly import of Russian pipeline gas is declining by 33% compared with last year, von der Leyen said as she called for a speedy transition toward renewable sources of energy.

"Some say, in the new security environment after Russia’s aggression, we have to slow down the green transition. This transition would come at ‘the cost of basic security’, they say. The opposite is true. If we all do nothing but compete about limited fossil fuels, the prices will further explode and fill Putin’s war chest," she said. "Renewables are home-grown. They give us independence from Russian fossil fuels. They are more cost-efficient. And they are cleaner."

The EU Council agreed last month to raise the share of renewables in the bloc’s energy mix to at least 40% by 2030 - up from the previous target of 32%. In addition, a 9% energy consumption reduction target for 2030 will become binding on all EU member states for the first time.



Wars Top Global Risk as Davos Elite Gathers in Shadow of Fragmented World

A view of a logo during the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, January 19, 2024. (Reuters)
A view of a logo during the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, January 19, 2024. (Reuters)
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Wars Top Global Risk as Davos Elite Gathers in Shadow of Fragmented World

A view of a logo during the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, January 19, 2024. (Reuters)
A view of a logo during the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, January 19, 2024. (Reuters)

Armed conflict is the top risk in 2025, a World Economic Forum (WEF) survey released on Wednesday showed, a reminder of the deepening global fragmentation as government and business leaders attend an annual gathering in Davos next week.

Nearly one in four of the more than 900 experts surveyed across academia, business and policymaking ranked conflict, including wars and terrorism, as the most severe risk to economic growth for the year ahead.

Extreme weather, the no. 1 concern in 2024, was the second-ranked danger.

"In a world marked by deepening divides and cascading risks, global leaders have a choice: to foster collaboration and resilience, or face compounding instability," WEF Managing Director Mirek Dusek said in a statement accompanying the report.

"The stakes have never been higher."

The WEF gets underway on Jan. 20 and Donald Trump, who will be sworn in as the 47th president of the United States the same day and has promised to end the war in Ukraine, will address the meeting virtually on Jan. 23. Ukraine President Volodymyr Zelenskiy will attend the meeting and give a speech on Jan. 21, according to the WEF organizers.

Among other global leaders due to attend the meeting are European Commission President Ursula von der Leyen and China's Vice Premier Ding Xuexiang.

Syria, the "terrible humanitarian situation in Gaza" and the potential escalation of the conflict in the Middle East will be a focus at the gathering, according to WEF President and CEO Borge Brende.

Negotiators were hammering out the final details of a potential ceasefire in Gaza on Wednesday, following marathon talks in Qatar.

The threat of misinformation and disinformation was ranked as the most severe global risk over the next two years, according to the survey, the same ranking as in 2024.

Over a 10-year horizon environmental threats dominated experts' risk concerns, the survey showed. Extreme weather was the top longer-term global risk, followed by biodiversity loss, critical change to earth's systems and a shortage of natural resources.

Global temperatures last year exceeded 1.5 degrees Celsius (34.7 degrees Fahrenheit) above the pre-industrial era for the first time, bringing the world closer to breaching the pledge governments made under the 2015 Paris climate agreement.

A global risk is defined by the survey as a condition that would negatively affect a significant proportion of global GDP, population or natural resources. Experts were surveyed in September and October.

The majority of respondents, 64%, expect a multipolar, fragmented global order to persist.