EU faces losses exceeding EUR1 trillion due to halt in Russian gas imports

(MENAFN) The EU could face losses exceeding €1 trillion due to the halt in Russian gas imports, according to Kirill Dmitriev, CEO of the Russian Direct investment Fund (RDIF). Dmitriev shared this outlook at the Future Minerals Forum in Saudi Arabia, highlighting the significant slowdown in the EU's economic growth since it ceased Russian gas imports following the escalation of the Ukraine conflict in 2022. Meanwhile, Russia’s Economy continues to show resilience.

In the wake of the conflict, the EU sought to reduce its dependence on Russian energy, with some countries halting imports earlier than others. However, these gas flows were cut off completely earlier this month after Ukraine refused to renew its gas transit agreement with Russia. Dmitriev attributed the EU’s losses to the high cost of importing liquefied natural gas (LNG) to replace Russian supplies, estimating the damage at over €1 trillion.

Despite sanctions aimed at Russia, Dmitriev noted that Russia’s economy remains strong, with a projected growth rate of 4% for 2024, compared to the EU’s modest growth of around 1%. The RDIF chief suggested that Russia’s growth may slow down next year, but its economic prospects will largely depend on the central bank's policies. Meanwhile, the EU faces sluggish economic growth and rising energy costs, with inflation and challenges in manufacturing sectors exacerbated by the loss of Russian gas. The European Commission has already revised down its 2025 growth forecast for the Eurozone to 1.3%.

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