Daily Management Review

EC proposes spending €210bn to get rid of Russian energy


The European Commission (EC) has proposed a €210 billion plan to phase out Russian energy resources entirely by 2027.

Ivan Radic
Ivan Radic
Its main concern is how to replace the 155 billion cubic meters of gas supplied by Russia to EU countries. It will do so primarily by hastening the transition to renewable energy, which will account for a staggering 45 percent of total energy consumption by 2030. Gas imports from alternate sources will also be increased. In the meantime, the European Commission is working on a plan to reduce gas demand in the case of supply disruptions.

The European Commission (EC) has proposed a plan (REPowerEU) to end Europe's reliance on Russian energy resources by 2027. "Russia's unilateral and unjustifiable military attack against Ukraine has caused huge disruption to the global energy grid," the European Commission wrote. To avert future energy supply disruptions, Europe will alter its energy policy. Russia has already turned off gas supplies to Poland and Bulgaria, and Finland, which rejected the new Russian gas payment system, expects to be cut off on the 20th or 21st of May.

According to the European Commission, the EU imports 90 percent of the gas it consumes, with Russia accounting for about 45 percent of these imports (the volumes vary across countries).

Russia also accounts for around a quarter of all oil and 45 percent of all coal (the EU is attempting to negotiate penalties against it) (a ban on supplies to the EU will begin in August). According to European Commission President Ursula von der Leyen, the share of Russian gas consumed in the EU decreased from 40% to 26% between April 2021 and April 2022.

source: ec.europa.eu