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Rabat – The impact of the Russia-Ukraine conflict has created an urgent need to end the EU’s dependency on Russian oil and gas imports, the European Commission has concluded.
On Wednesday, the European Commission presented its $220 billion “REPPowerEU Plan” to address challenges and crises stemming from “Russia’s invasion of Ukraine.”
In its presentation, the EU Commission emphasizes the “double urgency” to tackle Europe’s energy system crisis– particularly by putting an end to the EU’s dependence on Russian fossil fuels.
According to the EU, the bloc’s dependence “is used as an “economic and political weapon and cost European taxpayers €100 billion per year, and tackling the climate crisis.”
To make it possible, the EU is suggesting a fast transition to adopt the green transformation.
The EU suggested that the transformation will boost economic growth and climate action for the continent, as well as its partners.
The EU Commission established that its plan will cover several objectives, including diversifying supplies, and boosting the renewable energy sector, among others.
The EU considers that diversification of supply could help boost the EU’s energy system resilience and improve competitiveness with major energy gas supplies.
The EU imported over 40% of its total gas needs from Russia in 2021.
During the same period, the EU imported 27% of oil imports as well as 46% of coal imports from Russia. Even amid the conflict in Ukraine, Russian gas continues to flow through Ukrainian pipelines to European markets.
“Energy represented 62% of EU total imports from Russia and cost €99 billion,” the European Commission said.
The presentation of the commission’s plan comes a few months after its publication on March 8 amid the escalation between Russia and Ukraine.
The report established that the 2021 figures represent a “significant” decline in comparison with 2011, when energy represented nearly 77% of EU imports from Russia. The percentage is equivalent to €148 billion during that period.
Global impact
The Russia-Ukraine conflict is not only impacting the EU, but also has far-reaching consequences for the countries in the MENA region and elsewhere.
Morocco has been among the countries that have experienced a crisis due to the conflict, witnessing remarkable increases in the price of gas and oil products.
The price hikes have weighed down on vulnerable people as well as people with average incomes.
Recent data showed that gas subsidies have reached “historic” levels in Morocco.
The country’s subsidies fund now covers 74% of the original price for a unit of a gas cylinder.
Morocco’s total spending on energy subsidies will likely rise to a MAD 22 billion ($2,3 billion) at the end of 2022, up 51% from last year, Deputy Minister for State Budget Fouzi Lekjaa announced on Monday.
Gasoline prices in Morocco are also witnessing unprecedented increases compared to the pre-Ukraine crisis.
Drivers currently have to pay MAD 15.47 or $1.54 for one liter of gasoline.
One liter of diesel could cost roughly MAD 14.60 or $1.46.
Amid public uproar decrying the soaring prices, the government has echoed its previous statements, pointing to the global market as the source of the issue..
In April, the government spokesperson attributed the crisis to the ongoing conflict, saying that the effects of the crisis in Ukraine is “true.”
“The region experiencing the crisis is a strategic hub for global food production,” he said.
