The European Union plans to spend €210 billion to cut its dependence on Russian oil, coal and gas, as Ukraine allies move to weaken Russia’s financial power and hold over the continent.
The €210 billion fund will be sourced from EU coronavirus recovery fund.
During a press briefing on Wednesday, after the presentation of its “REPowerEU” plan, EU Commission President, Ursula von der Leyen, said European countries are looking to be independent from Russian fossil fuels.
The United States, Canada and Norway are expected to gain big from the plan, as EU will be switching its dependence from Russia to the aforementioned countries, as they become emboldened in their Ukraine defence.
Both US and Canada will see their supply of liquefied natural gas to Europe increase, with Norway also pumping more gas. Already, EU’s dependence on Russian natural gas has dwindled from 40% last year to 26% this year.
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Although, countries like Hungary and Germany could throw a spanner in the works, considering both nations said a total pullout from Russian pipelines could slump their economies.
Aside from seeking alternative sources from US, Canada and Norway, there are plans to hasten the renewables transition, in a bid to completely pull out of Russian pipelines by 2027.
Meanwhile, in order to tame skyrocketing prices in reaction to the economic sanctions against Russia, von der Leyen said, “When Europe acts together, it has more clout.”
She further explained that, “This way we can secure energy imports we need without the competition between our member states.”
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