America is working to revive Russian natural gas exports to Europe through pipelines that pass through Ukrainian territory, aiming for an energy ceasefire before winter.
Gas Export Revival Plan
This issue is clearly evident in the statements of officials from three countries. Jared Kushner and Steve Witkoff, American envoys, raised this idea during their trips to Russia and Ukraine in September. It appears that Russian gas is to be sold through an American intermediary to bypass European sanctions.
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Benefits and Challenges
According to American negotiators, Russia's return to the European gas market provides a strong incentive for Vladimir Putin to make the necessary agreements. Utilizing the Soviet-era pipeline network that passes through Ukraine not only secures the transit revenue needed by Ukraine but could also benefit energy prices in Europe.
A senior American official has stated that the White House has proposed that the proceeds from this sale remain in an escrow account in a third country to prevent their use in funding the war. This plan has been presented to European leaders as a way to reduce energy prices, while the continent's gas reserves have reached their lowest levels in recent years.
In this context, Ukraine has also continued its attacks on Russian refineries, targeting three major refineries in the past three days. These attacks have increased the necessity for an energy ceasefire ahead of the trilateral talks between the U.S., Russia, and Ukraine scheduled for mid-November in Abu Dhabi.
However, Russia has rejected America's efforts for such an agreement. The European Union's law prohibits the purchase of Russian gas until the end of 2027, and Dan Jørgensen, the EU Energy Commissioner, has emphasized the importance of maintaining this ban permanently.
Currently, Russia's share of gas consumed in Europe has dropped to 11%, while before the Ukraine war, this share was 45%. Additionally, American liquefied natural gas now accounts for 30% of Europe's gas consumption.
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