logo
US, Russia explore ways to restore Russian gas flows to Europe, sources say

US, Russia explore ways to restore Russian gas flows to Europe, sources say

Time of India08-05-2025

Live Events
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
LONDON/MOSCOW: With a frost covering Europe 's energy relations with Russia , officials from Washington and Moscow have held discussions about the U.S. helping to revive Russian gas sales to the continent, eight sources familiar with the talks have told Reuters.Europe slashed its imports of Russian gas following Moscow's invasion of Ukraine in 2022, a move that saw Russian exporter Gazprom post a $7 billion loss the following year.U.S. President Donald Trump is pushing for peace in Ukraine, raising the prospects of a thaw in gas ties.Sources close to the bilateral discussions said carving out a renewed role for Moscow in the European Union's gas market could help cement a peace deal with Russian President Vladimir Putin.Though much of Europe has sought alternative supply, some buyers have remained, and industry officials say more could return once a peace deal is agreed.As for Russia, nothing has hit its economy harder than the loss of most of Europe's gas market three years ago.It now supplies 19% of Europe's demand, down from 40%, mainly consisting of liquefied natural gas (LNG) and some piped via Turkey along the TurkStream pipeline.Washington's involvement in restoring the gas sales could help Moscow navigate political opposition in much of Europe.U.S. involvement would also benefit Washington, giving it visibility, and possibly some control, over how much Russian gas returns to Europe, two diplomatic sources and a White House source said.Since 2022, Europe has turned to other gas providers, including U.S. exports of liquefied natural gas (LNG).U.S. envoy Steve Witkoff and Putin's investment envoy, Kirill Dmitriev, have held conversations about gas as part of Ukraine peace talks, two of the eight sources said.Witkoff's spokesperson declined to comment when asked if he discussed the issue of Russian gas exports to Europe."Currently, there are no such discussions," Russia's Direct Investment Fund, headed by Dmitriev, said in a statement to Reuters.Gazprom would consider selling gas to Europe if a new owner took control of the gas network between Russia and Europe, Kremlin spokesperson Dmitry Peskov told French magazine Le Point in April.On the route crossing the Baltic Sea Gazprom controls the two twin pipelines of Nord Stream 1 and 2 backed by European firms which hold stakes.Moscow is ready to trade its gas and knows that some European countries still want to buy it, Peskov said in the Le Point interview. "There is a gas seller, there are potential buyers," Peskov told reporters in April.Countries still buying include Hungary and Slovakia which receive gas through the TurkStream pipeline. Belgium, France, the Netherlands, and Spain get LNG from Russia's Novatek under long-term contracts.Regarding how the Americans might get involved, five sources said talks to date have discussed U.S. investors taking stakes in the Nord Stream pipeline connecting Russia and Germany, or in the pipeline crossing Ukraine, or in Gazprom itself.U.S. firms could also serve as the buyers, purchasing gas from Gazprom and shipping it to Europe, including to Germany, the sources said.Two of the sources said diplomatic talks involving potential U.S. investors have also looked at the idea of a U.S. buyer taking Russian gas and then exporting it on to Europe as a way of alleviating European political opposition to resuming supplies.BlackRock, Vanguard and Capital Group each hold stakes of 1-2% in Gazprom.BlackRock, Vanguard and Gazprom did not respond to requests for comment. Capital Group declined to comment.The European Commission declined to comment. Commission President Ursula von der Leyen has expressed her opposition to returning to Russian energy supplies."Some are still saying that we should re-open the tap of Russian gas and oil. This would be a mistake of historic dimensions and we would never let it happen," she told a European Parliament session on May 7."Russia has proven, time and again, that it is not a reliable supplier."Brussels wants to ban new Russian gas deals by the end of 2025 and ban imports under existing deals by the end of 2027. The plan, to be debated next month, would require approval from the European Parliament and a majority of member states. Hungary and Slovakia have expressed their opposition to the move.Trump has said he hopes for a Ukraine peace deal soon and expects this to pave the way for both Russia and Ukraine to do big business with the U.S.Russia is ready to restart gas exports to Europe immediately if there is political will to do so, Putin has said.Kyiv and Washington signed a U.S.-Ukraine minerals deal on April 30 to include all Ukrainian government-owned natural resource assets and infrastructure but did not explicitly mention the pipeline."If this level of engagement between Russia and the U.S. continues, it's very likely that there will be a resumption of Russian gas flows... involving U.S. intermediaries," said a person who is familiar with the discussions.Gazprom, keen to resurrect its European sales, is considering offering German clients short-term 24-month contracts and steep price discounts, two sources said.Traditionally it has asked buyers to sign contracts lasting decades, two sources noted.Yet the EU remains broadly opposed, and there are other hurdles to overcome. There are numerous legal cases hanging over breaches of legacy contracts.The Nord Stream pipelines were damaged in a sabotage attack in September 2022. Three of the four pipes were ruptured, leaving just one still able to pump gas.The war in Ukraine has also changed the situation, with Russian attacks damaging pipelines crossing Ukraine, though the key transit route remains in working order.A more technical matter is that Nord Stream 2 also never received German government approval to begin sending gas to Germany, a spokesperson from Germany's economy and energy ministry noted, declining to comment further.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

LA protests explode after ICE raids: National guard deployed, marines on standby as tensions surge across California
LA protests explode after ICE raids: National guard deployed, marines on standby as tensions surge across California

Time of India

time33 minutes ago

  • Time of India

LA protests explode after ICE raids: National guard deployed, marines on standby as tensions surge across California

The immigration protests in Los Angeles began after ICE arrested 44 undocumented individuals. According to the US Department of Homeland Security, the total number later reached 118. Uniformed ICE agents carried out the operations in unmarked, military-style vehicles. Protesters gathered outside facilities where some of the arrested were believed to be held. This sparked large demonstrations in downtown LA and beyond. What is the government's response? President Donald Trump ordered the deployment of 2,000 National Guard soldiers to Los Angeles County on Saturday. This move was opposed by both California Governor Gavin Newsom and LA Mayor Karen Bass. The Trump administration has now indicated that US Marines could also be deployed if needed. The US military's Northern Command confirmed that about 500 marines are on standby. Defense Secretary Pete Hegseth said in a social media post that the Marines and National Guard 'stand with ICE.' Speaker of the House Mike Johnson supported the stance, calling it consistent with the principle of maintaining peace through strength. Where are the protests happening? The demonstrations are largely taking place in downtown Los Angeles. One protest group blocked the 101 Freeway, with reports of objects thrown onto the road and police vehicles being damaged. LAPD declared the area an 'unlawful assembly.' Protesters also spray-painted anti-ICE slogans on the Edward R Roybal Federal Building. In San Francisco, a solidarity protest near an ICE building also led to arrests. Police declared that gathering unlawful and detained about 60 people. What is an unlawful assembly? An unlawful assembly is legally defined as an intentional meeting of three or more people that disturbs public peace. LAPD enforced this definition during the protests and took action when demonstrations disrupted roads and damaged vehicles. How has law enforcement reacted? LAPD Captain Raul Jovel said 10 people were arrested on Sunday. Police Chief Jim McDonnell noted that 29 were arrested the previous day. Jovel also reported that three officers were injured in the clashes, though the injuries were minor and didn't require hospitalisation. What has been vandalised? Some protesters targeted Waymo self-driving cars, setting several on fire and spray-painting anti-ICE slogans. Media reports said the vandalism occurred between Arcadia and Alameda streets. LAPD issued an advisory asking the public to avoid the affected area. Peaceful protests in LA. LA is on fire What are leaders saying? California leaders strongly opposed Trump's actions. Newsom called the deployment a 'serious breach of state sovereignty,' and Bass termed it a 'chaotic escalation.' Both urged protesters not to resort to violence. Former Vice President Kamala Harris said the National Guard deployment was meant to provoke chaos and called it part of a broader agenda to 'spread panic and division.' Trump responded via his Truth Social platform, criticising Newsom and Bass and labelling protesters as 'insurrectionists.' Homeland Security Secretary Kristi Noem said ICE would continue enforcing immigration law despite the protests. Are there historical parallels? The Trump administration's actions have drawn comparisons to the 1992 Rodney King riots, where marines were deployed alongside the National Guard after a jury acquitted four officers who were filmed beating a Black man. Those riots lasted six days and resulted in 63 deaths. While the current protests in LA have seen sporadic vandalism, many demonstrations remain peaceful, according to officials.

India-EFTA trade pact likely to be implemented from September: Piyush Goyal
India-EFTA trade pact likely to be implemented from September: Piyush Goyal

Time of India

time35 minutes ago

  • Time of India

India-EFTA trade pact likely to be implemented from September: Piyush Goyal

India and EFTA's trade agreement may start in September. Piyush Goyal mentioned this after the agreement was signed on March 10, 2024. India will receive USD 100 billion investment in 15 years. Approvals are in progress. Goyal is in Switzerland to boost trade. Swiss firms are interested in pharma and cybersecurity sectors. There is excitement for India. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The free trade agreement (FTA) between India and the four-nation European bloc EFTA is likely to come into force from September, Commerce and Industry Minister Piyush Goyal said on two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024. Under the pact, India has received an investment commitment of USD 100 billion in 15 years from the grouping while allowing several products such as Swiss watches, chocolates, and cut and polished diamonds at lower or zero European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland."It will enter into force by September," Goyal told said the agreement has received approval from the Parliaments of all four countries. In Switzerland, there is an objection period open until July 10. July and August are holiday months is here for an official visit to meet leaders and businesses to promote trade and investments between India and said he held bilateral meetings with over a dozen companies here and most of them are keen to invest in Swiss firms have shown interest in sectors such as pharma, cybersecurity, and machinery manufacturing, he said."Lot of excitement here for India," he said.

Samsung to adopt AI coding assistant to boost developer productivity
Samsung to adopt AI coding assistant to boost developer productivity

Time of India

timean hour ago

  • Time of India

Samsung to adopt AI coding assistant to boost developer productivity

HighlightsSamsung Electronics plans to implement an artificial intelligence coding assistant service called Cline to improve productivity for its software development employees. The company has established a dedicated artificial intelligence productivity innovation group within its Device eXperience division to oversee the development of AI infrastructure and implementation of AI tools. Executive-level meetings are scheduled for June 17-19 to discuss business strategies and navigate global uncertainties, with a focus on the semiconductor business and supply chain vulnerabilities. Samsung Electronics said on Sunday it will adopt an artificial intelligence (AI) coding assistant service called Cline next month to enhance productivity among its software development employees. In a recent internal notice, the company said it has launched a beta test of Cline for employees in the Device eXperience (DX) division, which includes its mobile, TV and home appliances businesses, reports Yonhap news agency. Cline is an open-source AI tool that helps developers write, edit and test code using simple natural language commands like "create a login function." Unlike conventional coding assistants limited to basic tasks, Cline can handle more complex software development processes, significantly boosting productivity. Samsung plans to continue beta testing through the end of this month and aims to launch the official version as early as next month. As part of its transition into an AI-driven company , Samsung has also established a dedicated AI productivity innovation group within its DX division. The new group serves as a central control tower, overseeing the development of companywide AI infrastructure and systems while supporting the implementation of AI tools across business divisions. Meanwhile, Samsung will hold executive-level meetings later this month to discuss business strategies for the second half of the year. The global strategy meetings for the company's electronics division are scheduled for June 17-19, according to the sources. Samsung holds these meetings twice a year, in June and December, led by the heads of each business division. They review regional and business-specific issues, as well as discuss next year's goals and sales strategies . This year's agenda is expected to include strategies for navigating rising global uncertainties, including the shifting trade policies of U.S. President Donald Trump's second administration. Participants will also assess supply chain vulnerabilities and consider region-specific responses, the sources said. Roh Tae-moon, acting head of the Device eXperience (DX) division, and Jun Young-hyun, head of the Device Solutions (DS) division, will preside over the meetings. As in previous years, Executive Chairman Lee Jae-yong is not expected to attend the meetings, they said. The DS division, which oversees Samsung's semiconductor business, is expected to hold in-depth discussions on sales strategies and ways to boost long-term competitiveness.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store