“Europe is considering resuming purchases of Russian gas” – The Economist

Europe is already eyeing the possibility of resuming large-scale purchases of Russian gas as discussions about the imminent end of the war in Ukraine intensify.

This was reported by The Economist.

“Some European officials are eagerly looking at Russian gas. Lower electricity bills could revive Europe’s struggling industry and ease household burdens,” the article states.

According to calculations by Goldman Sachs, the end of the war in Ukraine could boost European GDP by 0.5%, mainly due to cheaper gas. Supporters of this approach argue that resuming gas purchases from Russia could encourage Vladimir Putin to negotiate a peace agreement and then adhere to it.

Even Friedrich Merz, a vocal critic of Russia and the likely next German chancellor, “could not rule out the possibility” of restoring gas imports from Russia, The Economist notes.

These discussions have been further fueled by the coldest winter in Europe in the past three years. Gas shortages are an issue, as major supplies of liquefied natural gas (LNG) from the U.S. and Qatar will only be available to Europe starting next year.

A crucial factor is the potential resumption of gas transit through Ukraine, which could lower prices across Europe by increasing supplier competition. Otherwise, Europe may have to consider reopening supplies via *Nord Stream* pipelines. However, after the explosions, these pipelines would require hundreds of millions of dollars in repairs, according to the publication.

The stance of U.S. President Donald Trump on this issue remains uncertain.

“A full return of Russian supplies could drive down global prices, making many American drilling operations unprofitable and rendering billions of dollars in LNG project investments suddenly worthless. On the other hand, Donald Trump wants to win the Nobel Peace Prize (for peace in Ukraine), and allowing some Russian gas to return as part of a peace deal might seem like a price worth paying,” the article states.

Earlier, Alice Weidel, the German chancellor candidate from the Alternative for Germany (AfD) party, called for lifting sanctions on Russia and restoring Russian gas imports.