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BRICS, with Russia as a key member, has outstripped the United States in gas trade to Europe for the first time in nearly two years.
Despite facing sanctions, Russia has emerged as the primary supplier of LNG gas to Europe, overshadowing the US. This surge in Russian gas exports comes at a time when Europe aims to reduce its reliance on Russian oil.
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However, many Eastern European nations heavily depend on imports from Russia, solidifying its position as the top LNG gas supplier to Europe, pushing the US aside in global trade agreements.
This development coincides with BRICS’ ambition to challenge the dominance of the US dollar as the world’s reserve currency. The alliance seeks to exert control over the global oil and gas sector in efforts to diminish the influence of the US dollar. As BRICS explores alternatives to the dollar for trade, the potential impact on various sectors in the US is a topic of interest.
Despite facing US sanctions, Russia, a BRICS member, has been actively engaging in gas trade deals with Europe and other regions.
The Putin administration has navigated around sanctions and forged agreements with Europe, Africa, Asia, and fellow BRICS nations. LNG shipments from Russia to Europe have surged to 15% this month, while US-based LNG exports to Europe have declined to 14%.
Tom Marzec-Manser, Head of Gas Analytics at Consultancy ICIS, remarked on the resilience of Russian gas market share in Europe despite efforts to diversify energy sources.
However, he noted that Russia’s dominance in the LNG sector might face challenges as demand increases, while US LNG production continues to grow with new capacity entering the global market.
While Russia currently leads in LNG gas supply to Europe, the evolving dynamics of the market and geopolitical factors could influence future trends in the sector.
