Europe has struggled to eliminate its dependence on Russian liquefied natural gas. In July, the Russian Federation almost became the region’s largest supplier after a reduction in supplies from the US following their redirection to Asia. Although the EU makes it difficult for the Russian Federation to transport LNG worldwide, the bloc has not banned imports. Sales to the primary consumers – Spain and France – have increased since February 24, 2022.
The reduction in supplies from the US also shows the danger of overreliance on transatlantic exports. These cargoes tend to have no destination restrictions, so trade flows can change quickly when prices and demand rise outside of Europe. In July, the total volume of LNG imports to Northwest Europe decreased by almost 20% compared to the previous month.
At the same time, Russian Gazprom’s net loss in the first half of the year amounted to ₽480.64B ($5.57B) against ₽255B ($2.96B) in the same period last year, according to the company’s report.