THE RUSSIAN INVASION AND ENERGY INSECURITY

Ravi Bhatiani from FETSA examines the longer-term effects of Russia’s ongoing war in Ukraine At the time of writing, we are in a situation of energy insecurity with doubts over continuity of Russian gas supplies. The situation related to reception of Russian oil and related products shipments are already being affected, due to a combination of self-sanctions and difficulties involved in insuring cargoes/vessels and receiving payments for services. In the context of the Russian invasion of Ukraine, there are short-term developments, changing on a weekly basis, such as sanctions, but there are also longer-term impacts. I would like to address some of the longer-term impacts. REDUCTION IN DEPENDENCIES The current policy environment at EU level is one in which the EU can have greater autonomy of action. There is a global decoupling of supply chains happening to reduce the risk of disruption to critical supply chains in the EU economy. Many academics and investors are calling this global trend the end of globalisation. In Europe, the priorities are reducing dependence on Russian energy products, as well as reducing dependence on other products coming from Russia such as rare...