In a surprising turn of events, Russia has reclaimed its position as a major player in Europe's gas market. Despite efforts by European countries to reduce their reliance on Russian energy following the invasion of Ukraine, Russia became the second largest gas supplier to Europe in May, surpassing the United States.
According to data from the Financial Times, around 15% of European gas imports now originate from Russia. This marks a significant increase from its lowest point, when Russia's share dwindled to only 10%. However, Norway remains the leading supplier, providing approximately one-third of Europe's gas needs.
Several factors have contributed to Russia's resurgence in the European gas market. A major LNG export facility in the US experienced disruptions in May, while Russia increased gas flows to Europe via Turkey in anticipation of maintenance work in June.
However, experts predict that Russia's increased gas supply to Europe may not be sustainable in the long run. The US is expected to ramp up LNG production, and Russia is aiming to expand its sales in Asian markets.
