The War On Energy

By Kaitlyn Liu and Sarah Wu

The ongoing war between Russia and Ukraine started in 2014, but has recently escalated into a global conflict, right as the world is recovering from a disastrous pandemic. Putin’s desire to demilitarize Ukraine and keep it from joining NATO, the “ Western defense alliance,” was a driving factor in this invasion. For a long time, the war had seen little progress, with neither side gaining a significant advantage. However, Ukraine has recently started to take over a few of Russia’s strategic military bases.

Given that Russia is a main supplier of fossil fuels, countries have been working to reduce their reliance on Russian exports. According to BBC, Russia supplied 40% of the European Union’s natural gas and 27% of its imported oil last year, totaling €400 billion. With the introduction of the REPowerEu plan, the European Union aims to reduce Russian gas imports by two-thirds in 2022. Over the course of the war, countries have also been placing sanctions on Russia, with the goal of ending purchases of Russian refined oil products by the February of 2023; the US and UK have already fully banned Russian oil and gas imports. As a result, Russia has had a harder time profiting off this sector of its economy. These lower profits have made it more difficult for Russia to afford military resources, benefiting Ukraine in the war.

These sanctions have also affected the EU, encouraging countries to seek out other affordable and sustainable alternatives to Russian fossil fuels. Many countries have found alternative gas suppliers; as of right now, while Europe is said to have enough oil and gas to sustain themselves for a short period of time, finding a long-term alternative is an issue. Two potential alternatives include the use of liquefied natural gas (LNG) and renewable energy. LNG is natural gas that has been cooled into a liquid state, allowing for easier transit. Furthermore, it is not easily flammable, making shipment much safer. Easier transportation allows the EU to receive liquified gas in bulk from all over the world, making it a viable solution to the energy shortage. However, LNG still contributes to global warming, despite being one of the cleanest fossil fuels. Therefore, renewable energy, specifically nuclear power, is also being considered as a relatively clean, effective alternative. While the construction of nuclear power plants can be very expensive, maintaining them is relatively simple.

The war in Ukraine is also significantly impacting the global economy. Because Ukraine and Russia are both major exporters of corn, wheat, and fossil fuels, energy and food prices have been rising. We can feel the consequences in daily lives — gasoline and diesel fuel prices have jumped to record highs, often exceeding pre-pandemic levels. Wheat-based goods such as bread have also become more expensive, making it harder for lower-income consumers across the globe to access food. However, with the adjustments currently being made to industries such as the energy sector, countries are finding solutions to their short-term ailments and embracing policies for a more sustainable future