Putin’s Natural Gas Leverage Over The EU Is Not Entirely Gone
Russia's leverage over the EU's natural gas supply has been reduced since its invasion of Ukraine, but it still has the potential to exert pressure, warns Swedish bank SEB.
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Posted 9/4/2023, 6:00:00 PM
oilprice.com
Relevant topic timeline:
Russia's invasion of Ukraine and subsequent disruptions in gas supply have caused Europe, particularly Germany, to seek alternative sources of natural gas, leading to a decline in Russia's market share and permanent damage to its reputation as Europe's largest gas supplier.
Russia is sticking to its conditions for a return to the Black Sea grain deal, including the reconnection of its state agricultural bank to the international SWIFT bank payments system, while Ukraine refuses to alter its stand and be hostage to "Russian blackmail."
The West needs to increase pressure on Russia's economy by intensifying sanctions and implementing stricter controls on Russian exports, oil price caps, and financial transactions, while also uncovering hidden stashes of money and putting Russia under a full financial embargo.