European Commissioner for Economic Affairs Valdis Dombrovskis confirmed that the European Union has reduced its dependence on Russian fossil fuels by 90%, stressing that the bloc does not intend to return to importing energy from Russia despite economic pressures and high energy costs.
In an interview with Al-Sharq on the sidelines of the spring meetings of the International Monetary Fund and the World Bank in Washington, Dombrovskis stated that Europe is continuing to disengage from the Russian energy sector, stressing that efforts are continuing to end the remaining imports as part of a long-term plan to enhance energy security and reduce dependence on external sources.
He pointed out that the European Union is paying special attention to accelerating the implementation of the “Green Deal” by expanding the scope of the use of renewable energy, and re-evaluating the role of nuclear energy in low-carbon systems, with the aim of confronting fluctuations in fossil fuel prices.
The European official explained, “Our message is also clear at the international level, including during meetings of global financial institutions, that the present time is not appropriate to ease pressure on Moscow.”
In a related context, the United States extended the exemption from sanctions for Lukoil gas stations outside Russia until the end of next October. The US Treasury Department reported that this exemption, which covers about two thousand gas stations spread across Europe, Central Asia, the Middle East, and the Americas, has been extended until October 29.
Dombrovskis also pointed out that the European economy is still suffering from the indirect repercussions of geopolitical crises, especially through their impact on energy prices, and he expected growth to slow by between 0.2 and 0.6 percentage points, with the inflation rate rising by more than a percentage point in some scenarios.
He added that Europe is facing what he called a “stagflationary shock,” as economic growth slows in conjunction with the rapid rise in energy prices, compared to previous expectations that indicated growth of approximately 1.5% this year.
Finally, he pointed out that the financial capacity of European governments has become more limited than it was during the Corona pandemic and the war in Ukraine, and called for the adoption of temporary support policies to mitigate the effects of the current crisis. (the East)
