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ENB Pub Note: This is an excellent article from Bloomberg about the potential for low-cost Russian natural gas to return to the European market. There are several key points to note while reading this article. President Putin has done an excellent job for Russia, replacing Europe as a customer with the Asian markets. As George McMillan has said, “All Putin has to do is nothing, and he has won,” not only the Ukraine war but also the financial battle with the West. The left governments have de-industrialized Germany and much of Europe even without the removal of Russian natural gas. Their horrific energy policies have killed economic growth, and it will be decades of recovery with or without Russian natural gas. Russia has moved on, and it would be nice to sell to the European markets, but make no mistake: they do not need the EU’s markets and only want the land that they occupy in Ukraine to block an invasion. History has shown that was the path for the last three invations into Russia. So, the European markets need Russian gas more than Russia needs a new customer. Not many countries grew their GDP in 2024, and Russia was in the 4% growth range even with heavy sanctions and shipping fewer products to Europe.
Russian President Vladimir Putin seems confident that pipeline flows of natural gas to Europe could be stepped up if a US-brokered deal to end the war in Ukraine is agreed — raising questions about whether the continent is willing to reverse course and revive that relationship.
“If, say, the US and Russia agree on cooperation in the energy sector, then a gas pipeline for Europe could be ensured,” Putin said at a briefing in Moscow on March 13. “And this will benefit Europe, as it will receive cheap Russian gas.”
But while some traders are speculating that Russian supply will increase, many expect limited volumes to return, if any. The European Union is working on plans, albeit delayed, to end its dependence on Russian energy by 2027.
None of the options to ramp up pipeline flows are particularly straightforward. The simplest would perhaps be a resumption of last year’s levels of gas transiting through Ukraine, which came to a halt at the end of December. These volumes met less than 5% of Europe’s total gas demand.

Why would Europe consider pivoting back to Russian gas?
It’s the “cheap” aspect that Putin mentions that could convince some countries in Europe to overlook their geopolitical concerns. The EU has made considerable headway in curbing its appetite for Russian gas after more than five decades of overwhelming reliance, but continued pricing pressures could test the bloc’s resolve.
Europeans are still paying more for gas three years after the region’s worst energy crisis in decades. And in the EU’s largest economy, Germany, some industries are hoping for a return of Russian supply as high energy costs weigh on their ability to compete with manufacturers abroad. Countries in Eastern Europe that used to rely on the Soviet-era flows of gas, especially Slovakia, have also been pushing for Russian pipeline volumes to come back.
On top of that, gas storage has become a bigger concern this year after a cold winter and drop in wind power generation saw the continent burn through its reserves more quickly. Europe faces a tough and expensive refilling season before the next winter starts, and any meaningful increase in gas supply in a tight market would bring much-needed relief.
Why is Putin optimistic that Europe will buy more Russian gas?
The potential for warmer relations between the US and Russia is key here. Russian and European officials say the US is exploring ways to work with Russian state-run gas giant Gazprom PJSC on global projects. Gazprom is keen for the US to help restart its Nord Stream pipelines between Russia and Germany, people familiar with the matter told Bloomberg News.
Gazprom has a majority stake in Nord Stream and is the sole owner of Nord Stream 2. For the latter pipeline, its Switzerland-based operator — a subsidiary of Gazprom — is in the middle of insolvency proceedings. An American investor with experience doing business in Russia, Stephen Lynch, was reportedly interested in acquiring the operator if it’s declared bankrupt. That would effectively give the US a stake in the project.
Sanctions relief could also unlock more exports of Russian liquefied natural gas, which Europe imported record volumes of last year. Russia has spare capacity as its newest project, Arctic LNG 2, controlled by Novatek PJSC, only managed to start limited shipments in 2024 before stopping due to sanctions imposed by the US and its allies. The curbs restricted access to ice-class tankers needed to navigate frigid northern waters and made foreign buyers reluctant to buy cargoes.
US President Donald Trump has previously said some sanctions on Russia could be lifted as part of a peace deal in Ukraine, but muddying the picture are his own ambitions to sell more US LNG to Europe.
How much Russian gas is Europe buying right now?
Prior to the invasion of Ukraine, Russia was Europe’s biggest provider of gas, serving around 40% of the region’s demand and delivering the fuel through several pipelines to more than 20 countries.
There’s also uncertainty over how much damage the gas network in the area has sustained after both Russia and Ukraine recently intensified their military efforts, including in Russia’s Kursk region, home to a key cross-border gas point that used to transit gas last year.
The Reference Shelf
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- Bloomberg Opinion’s Javier Blas explains why the return of Russian commodities to the global market isn’t a question of if, but when.
The post Putin Wants to Sell More Russian Gas to Europe. Can He? appeared first on Energy News Beat.
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