Tue, 24 May 2022

Energy Contingency Plan in Motion Amid Russia-Ukraine Crisis

Voice of America
26 Jan 2022, 17:05 GMT+10

WASHINGTON - The Biden administration has been working with European countries and energy producers around the world on ways to supply fuel to Western European countries should Russian President Vladimir Putin slash oil and gas exports in retaliation for sanctions imposed for an invasion of Ukraine.

'We've been working to identify additional volumes of non-Russian natural gas from various areas of the world from North Africa and the Middle East to Asia and the United States,' a senior administration official said in a briefing with reporters on Tuesday.

The contingency plan is aimed to reassure European allies concerned about the impact of Russia weaponizing its energy supply. Moscow provides approximately 40% of Europe's natural gas, and European energy stockpiles have been significantly lower in the past few months because of reduced Russian supplies.

FILE - Russian President Vladimir Putin, left, and Alexei Miller, Russian natural gas giant Gazprom CEO, attend a meeting in Novobureyskiy, Russia, on Aug. 3, 2017. FILE - Russian President Vladimir Putin, left, and Alexei Miller, Russian natural gas giant Gazprom CEO, attend a meeting in Novobureyskiy, Russia, on Aug. 3, 2017.

A second senior administration official underscored that oil and gas exports make up about half of Russia's federal budget revenues, which means that Moscow is just as dependent on its energy revenue as Europe is on its supply.

'If Russia decides to weaponize its supply of natural gas or crude oil, it wouldn't be without consequences to the Russian economy,' the official said.

White House press secretary Jen Psaki declined to confirm reporting that Qatar is one of the countries that the U.S. and European allies are turning to.

'Our approach is not about any one country or any individual entity,' she said while briefing reporters Tuesday, adding that the administration is engaging with major buyers and suppliers of liquefied natural gas to ensure flexibility in existing contracts to enable diversion to Europe if needed.

President Joe Biden is set to meet with Amir Tamim bin Hamad Al Thani of Qatar at the White House on January 31. According to the White House, ensuring the stability of global energy supplies will be one of the topics discussed by the leaders.

While having a contingency plan is important, analysts say it won't be easy to substitute for existing infrastructure, particularly under the current global supply chain crisis.

'Think of a gas pipeline as a faucet. ... It's super-efficient,' said Kristine Berzina, a senior fellow at The German Marshall Fund of the United States. Berzina told VOA that a contingency plan would be 'more of a bucket than it is a faucet.'

U.S. President Joe Biden responds to questions from reporters as he meets with his Competition Council in the East Room of the White House in Washington, Jan. 24, 2022. U.S. President Joe Biden responds to questions from reporters as he meets with his Competition Council in the East Room of the White House in Washington, Jan. 24, 2022.

US-Europe unity

On Monday, Biden said there was total unity among Western powers on the issue of Russia's pressure on Ukraine.

'I had a very, very, very good meeting - total unanimity with all the European leaders,' Biden told reporters shortly after a videoconference with European leaders on the escalating Russia-Ukraine conflict.

Some analysts, however, say Biden maybe overplaying talk of unity.

'In Europe, people are not as gung-ho and trigger-happy as they are here in the United States,' said Nina Khrushcheva, a professor of international affairs at The New School, in New York.

For months, the U.S. and European allies have warned of swift and severe economic consequences if Putin invades Ukraine. But some European allies have been nervous about the impact on their economies, including on the supply of Russian natural gas - particularly during the winter months.

Germany is especially reliant on Russian energy. Berlin has remained ambiguous about whether in the event of war it is prepared to shut down the just-completed Nord Stream 2 undersea pipeline, which will pump natural gas from Russia to Germany.

'Despite all this conversation of the united West over Russia, it's not as united,' Khrushcheva said. 'And Putin knows that.'

On Tuesday, Biden reiterated his position. 'I made it clear to Putin early on if he went into Ukraine there would be consequences,' he said.

FILE - The tanker Sun Arrows loads its cargo of liquefied natural gas from the Sakhalin-2 project in the port of Prigorodnoye, Russia, on Oct. 29, 2021. FILE - The tanker Sun Arrows loads its cargo of liquefied natural gas from the Sakhalin-2 project in the port of Prigorodnoye, Russia, on Oct. 29, 2021.

But analysts say that in moving forward with his harsh rhetoric on Russian sanctions, Biden needs to be mindful of the political calculation for European leaders.

'The Western European population isn't necessarily willing to suffer for Ukraine,' Berzina said.

On Monday, the U.S. put 8,500 troops on heightened alert for possible deployment to Eastern Europe, amid escalating tensions in the crisis along the Russia-Ukraine border, where Putin has deployed 127,000 troops, according to U.S. and Ukrainian estimates.

The Russian troop deployment is similar to Moscow's move ahead of its 2014 annexation of Crimea, a peninsula on the Black Sea, which triggered a series of international sanctions against Moscow but ultimately failed to deter Putin's land grab.

'They have not only shown no signs of de-escalating - they are in fact adding more force capability,' Pentagon spokesman John Kirby said about the Russian military buildup during a press briefing on Monday.

Both countries stepped up their military preparations Tuesday, with Moscow conducting a series of military exercises and Washington delivering a fresh shipment of weapons to Ukraine.

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