In a huge statement following the US Election, the European Union (EU) has said it will purchase oil from the United States, not BRICS member Russia. Indeed, European Commission President Ursula von der Leyen said Friday that the union is considering replacing Russian liquefied natural gas (LNG) imports with those from the US. The move would be a huge one in the West’s battle against BRICS, one where the US already has multiple sanctions over Russia.
“We still get a lot of LNG from Russia and why not replace it with American LNG, which is cheaper for us and brings down our energy prices,” von der Leyen said on Friday. She added the EU approach to trade policies implemented when Donald Trump takes power again as U.S. president in January will be to engage, look at common interests, and negotiate.
United States To Benefit From EU Oil Trades, Battling BRICS
Early reports indicate that oil and gas producers in the United States expect to find it easier to ramp up production and exploration under Trump. However, Trump’s plan to impose steep tariffs on a slew of imported goods could trigger retaliatory responses in consumer markets.
One of the biggest battles between the United States and BRICS has been in the oil industry, with the EU at the center of it all. BRICS has ramped up oil production over the last several years, and sanctions from the US in that industry have been a steep obstacle. BRICS members China and India helped Russia to bypass the US sanctions by purchasing their crude oil at discounted rates. Russia sold millions of barrels of oil to China and India for two years at cheaper prices than the existing market prices. India saved close to $7 billion in exchange rates by paying local currencies to Russia and not the US dollar.
Also Read: BRICS Reacts to Trump Presidency
The EU banned Russian oil imports in 2022 with some limited exemptions. The EU estimates that about 4 billion to 6 billion cubic meters (141 billion to 212 billion cubic feet) of Russian LNG went to third countries via EU ports last year. However, BRICS member Russia is suspected of running a “ghost fleet” to evade those sanctions.
