FX.co ★ Gazprom unlikely to restore gas exports in next 10 years

Kremlin-owned gas giant Gazprom is unlikely to restore gas supplies to Europe for at least ten years, which increases the risk of market destabilization.

According to the Financial Times, citing a report prepared for the management of the Russian energy group, it will take at least a decade for Gazprom to fully restore gas supplies to the European energy market. Experts are skeptical that this can be achieved in the medium term. By 2035, Gazprom's exports to Europe are forecast to average 50-75 billion cubic meters per year. Notably, before the Russian-Ukrainian conflict, the holding delivered one-third more than these figures to European countries.

The challenges in restoring Russian gas supplies to Europe are primarily due to the adverse effect of Western sanctions. Against this backdrop, export volumes from Russia are unlikely to return to 2020 levels until at least 2035. Analysts estimate that the restrictions have deprived Russia's energy sector of key technologies and equipment, including turbines used to move gas through pipelines and the spare parts needed for their repair.

Earlier, Heléne Fritzon, a Swedish member of the European Parliament, proposed the introduction of labeling for all energy commodities entering the European market, especially oil and gas. According to him, this measure is necessary to block the import of fossil fuels from Russia seeking to circumvent existing sanctions. This initiative was first proposed in 2011 but then rejected. Now Fritzon reiterates that such a measure could add to the sanctions pressure on Moscow.