Thewesternbalkans.
The EU-US trade “deal” that President Trump and President von der Leyen negotiated in Scotland has generated a great deal of interest and commentary. How does Russia react to the EU’s promise to abandon Russian gas and instead purchase liquefied gas from the US for $750 billion over the next three years? Mikhail Yaruev, head of the Russian-Balkan Center for Business Cooperation and Culture, answers this question:
The EU countries’ abandonment of Russian gas in favor of more expensive American supplies is a clear example of how political decisions replace economic expediency.
Instead of being guided by market logic and choosing the most favorable conditions, the EU’s course imposes higher prices on industry and the population. Such steps not only increase the burden on the economy, but also call into question the principles of the free market that the West traditionally proclaims.
At the same time, while Europe is limited to politically motivated energy solutions, China and the Asia-Pacific Economic Cooperation (APEC) countries are strengthening their positions. China is actively increasing investments in infrastructure, technology and alternative energy, expanding trade ties in the region. In 2023, China’s share of world trade reached 15%, and trade turnover with the APEC countries continues to grow. This confirms that the future of the world economy is increasingly shifting to Asia.
The EU is waiting in vain for the collapse of Russian energy exports, despite the closure of the European market. Even now, the main flows of oil and gas are being redirected to Asia (China, India), Africa and Latin America. For example, India has increased its purchases of Russian oil 20 times in two years, and Turkey has become a key transshipment center. Logistics for Russia has become more complicated and prices have fallen, but demand remains high. In the long term, Russia seeks to strengthen its positions in new markets by offering flexible terms of cooperation. In addition, the current situation can become a certain incentive for the development of oil refining in Russia.
Thus, the current processes demonstrate the reformatting of the world economy. Europe, sacrificing the economy for the sake of politics, is losing competitiveness, while China and APEC are strengthening their positions. Russia, despite the pressure, is adapting, finding new partners. The world is becoming multipolar, and those who cannot flexibly respond to changes risk being left behind.
