US and EU unveil major gas deal
March 25, 2022
US President Joe Biden and European Commission President Ursula von der Leyen on Friday announced a new gas deal as Europe tries to end its reliance on Russian energy.
The meeting came on the second day of a European Union leaders summit focused on Russia's invasion of Ukraine.
Ahead of their talks, both sides unveiled a deal for the US to bring liquefied natural gas (LNG) to Europe. The EU is experiencing an energy crunch as the Russian invasion of Ukraine and sanctions against Moscow take their toll.
"We are coming together to reduce Europe's dependency on Russian gas," Biden said in a joint press conference. "We should not subsidize [Russian President Vladimir] Putin's brutal attack on Ukraine."
Von der Leyen called the deal "a big step" towards ending reliance on Moscow for energy. Both leaders hailed the agreement for bringing the US and the EU closer together and highlighted that a major part of the partnership is ending reliance on fossil fuels altogether in favor of renewable energy.
US to increase LNG exports by 15 billion cubic meters
As part of the plan, the US and other nations will increase LNG exports to Europe by 15 billion cubic meters this year, the White House said. Even larger shipments would be delivered in the future.
Although the initiative will likely require new facilities for importing liquified natural gas, the partnership is also geared toward reducing reliance on fossil fuels in the long run through energy efficiency and alternative sources of energy, according to Biden.
The Commission will also work with EU countries to ensure they can receive about 50 bcm of additional LNG until at least 2030, the factsheet provided by the White House said.
A day earlier, Biden had attended an extraordinary NATO summit as well as the EU leaders' meeting, as Western powers work on a unified response to Russian aggression.
Later Friday, Biden was set to head to Poland for the final stop on his visit to Europe. Poland has been on the forefront of receiving refugees from neighboring Ukraine and there are concerns over the conflict nearing the border.
EU summit yields price controls for Spain and Portugal
EU leaders had an intense debate over the energy crunch, but presented a united front.
Southern European states had called for a decoupling of electricity and gas prices, but met resistance. As a compromise, Portugal and Spain were allowed to introduce temporary measures to limit prices.
Von der Leyen said an exception had been agreed for these countries, describing it as "special treatment for the Iberian peninsula."
Leaders agreed on a Commission proposal to move toward joint purchases of natural gas as well as ensuring storage facilities are kept full in a bid to avoid another energy crisis.
EU leaders have refused Putin's demand they pay for Russian gas in rubles.
French President Emmanuel Macron said on Friday there was no reason to accept such a demand.
"All the texts that have been signed are clear. This is forbidden," Macron told a news conference."European firms that buy gas and which are operating on European territory have to do so in euros. Therefore it is not possible today to do what is being demanded, it is not contractual," he added.
aw, es/nm (AP, dpa, Reuters)