Russia Sees Opportunity in Gas Crisis

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The current gas crisis has reaffirmed Russia's faith in fossil fuels, but it remains to be seen if it strengthens Moscow's hand in the energy transition. The crisis is adding strain to already poor relations between Russia and its top oil and gas customer, Europe. Moscow is promoting long-term gas supply contracts as a remedy for Europe's gas woes, while most of the EU is pushing for a faster transition away from fossil fuels and blaming Russia for recent gas price spikes. The situation could also complicate Moscow's new goal to achieve carbon neutrality by 2060. At an estimated $1 trillion through 2050, the net-zero plan will be expensive, and it will be challenging for oil- and gas-dependent Russia to avoid excessively burdening its key industries and citizens with higher costs. It will also require significant coordination with Europe on recognition of national carbon units, green certificates, Russia's natural absorption capacity and other issues.

Oil Supply, Gas Demand, Gas Supply, Hydrogen
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