Energy, Climate and Trade: The Economic and Climate Consequences of EU-Russia Trade Restrictions in the Natural Gas Sector

The purpose of the present study is to examine the economic and climate implication of redefining energy relations between the European Union (EU) and Russia following the disruption of Russian natural gas supplies after 2022. The analysis focuses on the impact of declining in Russian pipeline gas imports on the EU’s energy security, diversification of energy supply, growing role of liquefied natural gas (LNG) and progress of the energy transition in the EU through the increasing use of renewable energy sources (RES), as well as changes in EU climate policy. Furthermore, the study examines the economic impacts of the energy crisis, including energy prices, industrial competitiveness and wider socio-economic effects. The study is being conducted on the basis of the statistical data provided in the reports of the international organisations and the European energy market reports and studies conducted and published by the researchers in the areas of international trade, energy economics, and climatic policies and sustainable development and environmental policies at the global and regional levels. This study shows that the energy crisis has resulted in economic implications for the EU, and at the same time became the accelerator of the energy transition through the diversification of the energy suppliers and the development of RES, simultaneously promoting the implementation of the climate policies. This study concludes that energy security and climate policy are interconnected, which once again underscores the importance of comprehensive policy approaches to ensuring both economic resilience and sustainable energy transition.