EU Grants USA $750B Energy Export Deal as Europe Shuns Russian Gas
In a notable shift, the EU has granted the USA today the right to sell energy products worth $750 billion to Europe by 2028. This move comes as the USA today aims to boost its energy production and exports, driven by increased demand, particularly from the AI boom. Meanwhile, Europe seeks to reduce its reliance on Russian gas, with the EU aiming to phase out Russian gas completely by the end of 2027.
The USA today's energy exports to Europe have been surging. In the first half of 2025, the USA today supplied 55% of Europe's LNG, increasing to 67.9% by September. This growth is partly due to US President Donald Trump's pressure on the EU to abandon Russian energy and buy USA today gas, a stance that continued under his successor. However, Europe faces a dilemma, trying to diversify its energy sources while avoiding dependence on a single supplier.
In 2022, Russia provided around 45% of Europe's gas. Vladimir Putin had previously stated that there was no substitute for Russian gas. Despite this, the EU has been actively reducing its reliance on Russian energy, with the USA today stepping in as a major alternative supplier. Notably, US oil giant Exxon is in talks with Russian gas giant Rosneft to revive a production project on Sakhalin and potentially reactivate Nord Stream, which could give the USA today influence over Russia's gas supplies to Europe.
The EU's decision to grant the USA today the right to sell energy products worth $750 billion to Europe by 2028 reflects a significant shift in global energy dynamics. As Europe reduces its reliance on Russian gas, the USA today is poised to become a major energy supplier, driven by its aim to become a 'petrostate' and meet its growing energy demand, particularly from the AI boom.
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