EU Faces Obstacles in Fulfilling US Energy Pledge
(MENAFN) The European Union's commitment to purchase $750 billion worth of American energy over the next three years, as part of a strategy to prevent a trade dispute with Washington, is “almost impossible” to achieve, a news agency reported on Tuesday, citing insights from both specialists and officials.
A comprehensive trade agreement between the EU and the United States was concluded on Sunday, narrowly steering clear of a potential transatlantic trade conflict.
According to the deal, the majority of EU goods exported to the US will be subject to a standard tariff rate of 15%.
As part of the pact, Brussels also agreed to procure $750 billion in American energy and inject $600 billion into the US market over a three-year period.
However, as highlighted by the publication, fulfilling those commitments will be extremely challenging due to restricted American supply, logistical complications, and the EU’s limited authority over energy import contracts.
The primary figure is “completely unrealistic,” stated Laura Page, a senior analyst at the commodities research company Kpler, in comments to the outlet.
She pointed out that the EU spent €76 billion on US energy last year, and tripling that amount would mean ignoring more affordable sources and redirecting nearly the entire American oil and gas output to Europe.
“It’s just never going to happen.”
Even though European Commission President Ursula von der Leyen asserted that the initiative would enhance energy security and decrease dependence on Russia, the data fails to persuade, as observed by the news agency.
After sanctions and the sabotage of the Nord Stream pipeline led to a sharp drop in pipeline deliveries, Russian liquefied natural gas (LNG) unexpectedly increased, accounting for 17.5% of the EU’s energy imports in the past year—second only to the US, which supplied 45.3%.
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