Russia’s Natural Gas Exports Are Shrinking
According to Russian news reports, the volume of Russia’s natural gas exports by pipeline could decrease by up to 50% this year compared to last year. This decline highlights the blow to Russia’s vital gas exports industry since the country invaded Ukraine.
Russia was once Europe’s primary supplier of natural gas, but since the invasion in February 2022, the West has imposed heavy sanctions on Russia. Europe’s main strategy for reducing dependence on Russian energy has been to increase imports of liquefied natural gas from countries like the U.S. while also reducing demand, and this strategy has surprisingly worked well.
While Russia has been able to withstand embargoes in the oil market, it is much more challenging to find new customers for gas because it is mostly transported through fixed pipelines. Russia may see some increase in gas sales to China and Turkey, but evidence suggests that its natural gas export industry may be steadily disintegrating.
www.nytimes.com