Spain portrays itself as the reply to Europe’s Russian vitality drawback

Spanish Prime Minister Pedro Sánchez has mentioned his nation – and southern Europe extra broadly – may reply to a discount in fuel provides from Russia because the area seeks to double down on sanctions in opposition to Moscow.

“Spain and, I’d say, southern Europe may have an opportunity to answer this vitality dependence of Russia’s fossil vitality,” Sanchez instructed CNBC on the World Financial Discussion board in Davos late Monday.

Sanchez highlighted that Spain represents 37% of the EU’s whole regasification capability – the place liquefied pure fuel is transformed into the top product of pure fuel. He additionally famous that the Iberian Peninsula, occupied by Spain and Portugal, is dwelling to just about half of the EU’s LNG storage.

“This conflict additionally taught us an important lesson, which is that renewable vitality, hydrogen, vitality effectivity should not solely a fantastic ally for international locations and economies in tackling local weather change efforts, however this very complicated and really It can additionally present us with the means to extend our resilience and autonomy in an unsure geopolitical situation.”

We need alignment between ECB and EU fiscal policy, says Spain's Sanchez

Power costs have soared this yr as Russia’s assault in Ukraine destabilized markets and Western international locations imposed sanctions on Moscow. Costs on the Dutch TTF hub, a European benchmark for pure fuel buying and selling, greater than tripled between February 16 and March 7, as Russia launched an unprovoked invasion of its neighbour.

The difficulty of vitality safety – and rising vitality costs – has been on the fore and middle of political debate in Spain, with Madrid one of the crucial vocal in regards to the want for European motion to deliver down costs for customers.

Together with neighboring Portugal, Spain has launched a brief cap on the value of pure fuel and coal – a transfer that units them other than the remainder of the European Union.

Sanchez mentioned the EU vitality market was not nicely suited to take care of the present disaster. “That is the start of an even bigger reflection that we have to face on the European stage,” he mentioned.

Spain angered Algeria earlier this yr when Madrid determined to re-export fuel to Morocco, amid a diplomatic standoff between the 2 North African international locations that share a land border.

Sanchez on Monday shrugged off the concept Spain was substituting Russia for an additional risky provider, Algeria, which threatened to chop off fuel flows to Madrid due to its take care of Morocco.

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