London Daily

Focus on the big picture.
Wednesday, Jun 24, 2026

EU signs US gas deal to curb reliance on Russia

EU signs US gas deal to curb reliance on Russia

The US and the EU have announced a major deal on liquified natural gas, in an attempt to reduce Europe's reliance on Russian energy.

The agreement will see the US provide the EU with extra gas, equivalent to around 10% of the gas it currently gets from Russia, by the end of the year.

The bloc has already said it will cut Russian gas use in response to Russia's invasion of Ukraine.

Russia currently supplies about 40% of the EU's gas needs.

The new deal will involve the US and other countries supplying an extra 15 billion cubic metres of gas on top of last year's 22 billion cubic metres.

The new total will represent around 24% of the gas currently imported from Russia.

The eventual aim is for the US and international partners to provide about 50 billion cubic metres per year to the EU.

Cutting reliance on Russia will mean generating more renewable energy and improving energy efficiency as well as increasing imports.

The deal was announced on Friday during a three-day visit by US President Joe Biden to Brussels.

Mr Biden and European Commission President Ursula von der Leyen discussed Russia's invasion of Ukraine and offered fresh support to Kyiv.

"Putin is using Russia's energy resources to coerce and manipulate its neighbours," Mr Biden told reporters in Brussels. "He's used the profits to drive his war machine."

He said the long term benefits of the deal would outweigh the short term pain that reducing Russian gas supplies would cause.

"I know that eliminating Russian gas will have costs for Europe, but it's not only the right thing to do from a moral standpoint, it's going to put us on a much stronger strategic footing."

President von der Leyen said: "We want, as Europeans, to diversify away from Russia towards suppliers that we trust that are friends and that are reliable."

She pointed out that the target 50 billion cubic metres per year "is replacing one-third already of the Russian gas going to Europe today. So we are right on track now to diversify away from Russian gas."



The EU gets 40% of its gas from Russia. If it's to wean itself off that dependency, it needs to get its energy elsewhere.

The question is, where from?

Gas is already piped from Norway - but those pipelines are already operating at maximum capacity. The EU gets relatively little from the North Sea.

New supplies will have to come from further afield, in the form of LNG - gas that's been chilled and liquified.

But there's already intense competition for LNG supplies from countries such as Algeria and Qatar, and that's been pushing up prices.

The 50 billion cubic metres of gas a year from the US - more than double the current quantity - would certainly be welcome.

But it still wouldn't fill the gap if Russian supplies were removed.

There are also question marks over how much gas the US can supply, how quickly it can increase exports to the EU - and how much those shipments will cost.

The EU has been enjoying cheap gas for many years - but now it seems to have accepted that era is coming to an end.

Russia's war with Ukraine has helped push energy prices to record highs.

Energy prices were already rising before the invasion as economies started to recover from the Covid crisis.

The Ukraine invasion prompted the EU to pledge to cut Russian gas use by two-thirds this year by hiking imports from other countries and boosting renewable energy.


The White House said that greater energy efficiency can be immediately achieved through increasing the use of smart thermostats and heat pumps.

The EU said that reductions through energy savings in homes can replace 15.5 billion cubic metres this year and that accelerating wind and solar deployment can replace 20 billion cubic metres.

The EU's goal is to save 170 billion cubic metres by 2030 through energy efficiency and by using renewable energy.

That 170 billion on top of the planned 50 billion of additional gas from the US and other countries means Europe's reliance on Russian gas could be replaced by 2030.

Russia sanctions


In response to Russia's invasion of Ukraine, the US is banning all Russian oil and gas imports and the UK will phase out Russian oil imports by the end of 2022.

The EU has said it will switch to alternative supplies and make Europe independent from Russian energy "well before 2030".

Germany has put on hold permission for the Nord Stream 2 gas pipeline from Russia to open.

Meanwhile in the UK petrol prices have hit record highs as oil and gas costs soar.

Oil jumped to $139 a barrel at one point earlier this month, the highest level for almost 14 years, while wholesale gas prices for next-day delivery more than doubled.

Newsletter

Related Articles

0:00
0:00
Close
UK Announces New Military Infrastructure at Catterick to Support Engineer Regiment Relocation
University of Reading Ranked Among Top 100 Globally for Sustainability Impact
UK Launches Counter-Fraud Taskforce to Investigate Covid Loan Scams
UK Government Introduces Customs and Tax Reforms to Support High Street Retailers
Jonathan Haskel Nominated as Chair of the UK Office for Budget Responsibility
UK Government Expands Powers to Recover Benefit Debt and Tackle Welfare Fraud
Labour Party Leadership Contest Intensifies as Andy Burnham and Ed Miliband Clash Over Economic Direction
Rail Operators Urge Essential Travel Only as Extreme Heat Threatens UK Network Stability
United Kingdom Issues Red Extreme Heat Warning as Temperatures Forecast to Reach 38°C
Keir Starmer Announces Resignation as UK Prime Minister Amid Deepening Political Instability
UK Biotechnology Sector Receives Increased Public Funding to Support Regional Growth
Police Chiefs Update National Protest Management Guidelines Amid Rising Demonstration Activity
UK Aviation Regulator Expands Support for Regional Airports to Strengthen Domestic Routes
CMA Launches Investigation Into Retail Pricing Across UK Grocery Sector
UK Energy Operator Warns of Winter Supply Pressures Despite Stable Overall Grid Outlook
UK Research Council Expands Funding for Regional Biotechnology and Life Sciences Clusters
UK Compensation Scheme for Post Office Horizon Scandal Reaches 80 Percent Completion
Police Chiefs Issue Updated National Guidance on Managing Large Public Demonstrations
UK Expands Regional Airport Funding Scheme to Boost Domestic Connectivity
UK Competition Watchdog Launches Inquiry Into Grocery Pricing Practices
National Grid Warns of Tight Energy Management Needs During Upcoming Winter Peak Demand
UK Education Department Introduces National Standards for AI Use in Secondary Schools
UK High Court Clears North Sea Carbon Capture Project After Final Legal Challenge Fails
Northern Ireland Leaders Hold Emergency Talks on Trade Disruption Under Windsor Framework
Welsh Government Moves to Expand Social Housing in Response to Severe Affordability Pressures
UK Economy Sees Unexpected Rise in Business Investment in Second Quarter, ONS Data Shows
Scottish Government Unveils Multi-Billion Pound Investment Plan for Renewable Energy and Grid Expansion
UK and EU Agree Enhanced Defence Cooperation Pact Covering Intelligence and North Sea Security
Prime Minister Orders Independent Review of NHS Performance After Record Waiting Lists
Bank of England Holds Interest Rates at 5 Percent as Services Inflation Remains Persistent
UK Heatwave Disrupts Transport, Healthcare and Public Services as Red Weather Alerts Expand Nationwide
Barclays Warns of Growing Cyber Risk Divide Between Large UK Firms and Micro Businesses
European Defence Plans Including Ukraine Integration Prompt UK Strategic Reassessment
UK Equity Markets React as US–Iran Peace Roadmap Eases Oil Price Pressures
United Kingdom Expands Global Clean Energy Partnerships With Brazil, Morocco and Tanzania
Lord David Frost Urges Incoming UK Leadership to Abandon EU Regulatory Reset Strategy
Housing Groups Support Amendment to Strengthen Fire and Gas Safety Access Powers in Social Housing
South London NHS Estates Staff Ballot on Industrial Action Over Pay Structures in Hospital Maintenance Services
United Kingdom Government Invests £60 Million in AI Research Labs at Oxford and University College London
Barclays Cyber Security Report Highlights Rising Threat Exposure Among UK Small Businesses in AI-Driven Attacks
UK Met Office Heatwave Triggers Transport Warnings as Rail Operators Urge Cancellations Amid Infrastructure Strain
South London NHS Estates Workers Ballot for Strike Action Over Pay Disputes Across Major London Hospitals
Barclays Warns of Severe Cyber Security Gap Between Large Corporations and Small Businesses in the United Kingdom
United Kingdom Government Allocates £60 Million for Artificial Intelligence Research Laboratories at Oxford and UCL
National Health Service Approves Teplizumab Treatment to Delay Onset of Type One Diabetes in First European Rollout
Met Office Issues Rare Red Extreme Heat Warning Across London, South East and West Midlands as Transport and Health Systems Face Disruption
Prime Minister Keir Starmer Resigns After Labour Party Revolt Following Economic Stagnation and Local Election Losses
United Kingdom Economy Contracts for Second Consecutive Month as Private Sector Weakens and Job Loss Fears Rise
Taxpayer Support Grows for Higher Digital Levies on Multinational Tech Companies
Bank of England Signals Caution Over Inflation Despite Easing Energy Prices
×