Expert predicts negative consequences for the EU due to the refusal from Russia's energy resources

The European Union's (EU) rejection of Russian energy resources has led to serious economic consequences, including rising energy prices and deindustrialization, Igor Yushkov, an expert of the Financial University under the Government of the Russian Federation and a leading analyst of the National Energy Security Fund, told Izvestia on 31 January.

Earlier in the day, European Commission Chairwoman Ursula von der Leyen said that the refusal from Russian energy resources has cost Western countries dearly.

"Europe has suffered because of high gas, electricity and fuel prices. If they had not refused Russian energy resources, the situation could have been less severe," Yushkov explained.

The expert recalled that since August 2022, the EU has also banned imports of Russian coal, which further increased energy costs.

"Even before the events of 2022, European authorities persuaded energy companies not to invest in new projects, but to focus on renewable energy. This led to the fact that energy demand recovered after the pandemic, while supply was unable to meet it," he explained.

According to the expert, the industrial sector, especially energy-intensive enterprises, was hit hardest.

Also hard hit were producers of nitrogen fertilizers and the chemical industry, which use gas as a raw material. In addition, Germany, which has been the industrial engine of Europe, has seen its economic performance decline for the second year in a row.

"Gas is several times more expensive in Europe than in the US. For example, in 2022, the price of gas in the EU reached several thousand dollars per 1,000 cubic meters, while in the US it remained at $100. This makes European products uncompetitive," Yushkov summarized.

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Earlier, on January 21, Iqbal Guliyev, deputy director of the International Institute of Energy Policy and Diplomacy of MGIMO, told Izvestia about the factors of supply shortage in the European gas market. According to him, the European gas market may be affected not only by natural and climatic conditions, but also by the cancelation of pipeline gas supplies from Russia. Despite this, since the beginning of 2025, there has been a significant increase in the volume of transit of liquefied natural gas from Russia for European countries.