Behind the cliff and in front of the stream is Europe, deciding today whether to proceed to the sanctions stage touching on energy.[/B] Something that if done at this stage will come as a huge surprise, given the heavy dependence that major European countries still have on Russian gas.
This is now the biggest headache for European leaders. On the one hand they appear absolutely determined to inflict costs on Russia and on the other hand they are reluctant to take decisions that will act as a boomerang. In other words, they are imposing measures that go as far as the quilt, just as they did with SWIFT after keeping the banks from which gas transactions take place in the interbank system.
We only need to look at the percentage of countries' dependence on Russian energy resources to understand the magnitude of the problem. According to the figures in force a few days before the war broke out, 50% of the gas imported by Germany, 25% imported by France and 46% imported by Italy comes from Russia. Markets such as Finland and Latvia import 90% of their gas from Russia.
Long before the war in Ukraine began, the European Union was studying a plan to wean itself off Russian gas with a time horizon of 2030. The developments have caught up with the Old Continent, which is now feeling the need for drastic action immediately. The aim is to reduce gas imports from Russia by 80% in the coming months.
The role of Cyprus
Our country can and is ready to play a role in this effort, providing solutions that are not immediately feasible. Cyprus can in the first instance act as a bridge for the transport of gas from Middle Eastern and Gulf countries.
At a later stage and if the exploitation of our natural resources is accelerated, they could be channelled to the European market through the East Med. The pipeline has come back to the fore in recent weeks as high gas prices today make it economically viable.
De facto, the most immediate solution that Cyprus can provide is the supply of electricity from countries such as Egypt and Israel. But even this solution cannot be implemented tomorrow. Based on the updated timetable, the EuroAsia Interconnector station in Greece (from Israel-Cyprus) will reach Greece in 2025 and EuroAfrica (from Egypt-Cyprus) in 2026.
Ceiling and common reservoir
Apart from the long-term solutions, European leaders will today consider two very important aspects related to the energy crisis. The first has to do with the cap on energy prices, which is a demand of many countries. The second concerns the common market for gas. The proposal on the table includes an obligation for all countries to have 90% full gas storage facilities. In this case Europe would be able to buy and store the gas it needs at least until autumn. This will buy time to look for permanent solutions.
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