South Korea to share gas with Europe after Russia cuts supplies to some EU countries

Fears of natural gas supply disruptions in Europe have intensified as the continent's largest gas supplier, Russia suspended gas supplies to some European countries. However, after Russia's decision, South Korea has stated that it will ship some of its liquified natural gas (LNG) to Europe in an effort to alleviate the energy crisis caused by a drop in supply from the Russian Federation.

As per the reports of Yonhap, South Korea's industry ministry stated that the country has chosen to redirect some of its LNG gas shipment to Europe since it has "some room" for such support in the spring. The Ministry did not disclose when or how much South Korea will offer, but it did say that the gas would be shipped to Europe before summer, albeit the volume would "not be that great."

Decision was made at the request of US or European countries

An official stated that the decision was made at the request of United States or European countries. Media sources suggest that Washington requested South Korea's assistance in providing gas to Europe in February, but Seoul declined at the time. However, now after Russia's suspension of gas supply, South Korea has come out in support of Europe. The import price of natural gas for South Korea was $1,013.35 per ton at the end of March, increasing 20.08% from the previous month, according to Yonhap. Government records suggest that the equivalent figure in March 2021 was $438.42.

Russia requested that European countries pay for its gas in Rubles last month

Last month, Russia requested that European countries pay for its gas in Rubles as a result of international financial sanctions but the European countries refused. Gazprom, a Russian energy firm, announced the suspension of gas deliveries to Poland and Bulgaria on Wednesday, citing their refusal to pay in Rubles. Gazprom also warned that if Poland and Bulgaria illegally tap the pipeline, it would restrict gas transport to neighbouring countries. Analysts believe that the decision shows that Russia is willing to penalise other, larger European countries for declining to pay in Rubles, even if it implies financial damage for Gazprom. Germany and Italy are two of the major consumers of Russian natural gas in Europe.

Image: AP