Officials from the US and Russia have reportedly engaged in talks to potentially restore Russian gas flows to Europe, reported Reuters, citing sources.
These discussions come amidst ongoing tensions following Russia's invasion of Ukraine in 2022, which led to Europe drastically reducing its Russian gas imports.
Gazprom, Russia's leading gas exporter, experienced a substantial financial hit due to the reduced demand, posting a loss of $7bn (Rbs586bn) in the subsequent year.
The US President, Donald Trump, is advocating for peace in Ukraine, which could lead to a revival of the gas trade between Russia and Europe.
Reintegrating Russian gas into the European market could be instrumental in securing a peace agreement with Russian President Vladimir Putin, the report said.
Despite Europe's shift towards alternative energy suppliers, including increased imports of US liquefied natural gas (LNG), there remains a contingent of European buyers who could revert to Russian gas once a peace deal materialises.
Russia's economy has been significantly impacted by the loss of the European gas market, with its supply to Europe now reduced to 19% from 40% previously.
According to the report, the US' role in facilitating the return of Russian gas could help address political resistance within Europe.
This involvement could also provide the US with greater insight and influence over the volume of Russian gas re-entering the European market, according to diplomatic sources.
US Envoy Steve Witkoff and Kirill Dmitriev, Putin's Investment Envoy, have discussed the matter as part of the Ukraine peace negotiations. However, Russia's Direct Investment Fund, led by Dmitriev, has denied current discussions on the topic, the report said.
Kremlin spokesperson Dmitry Peskov has expressed Russia's readiness to resume gas trade, noting that there are still European countries eager to purchase Russian gas.
Potential US involvement could include US investors taking stakes in key pipelines such as Nord Stream, or US companies acting as intermediaries in the gas trade with Europe.
Notably, investment firms BlackRock, Vanguard and Capital Group each hold minor stakes in Gazprom, although they have not commented on the matter.
The European Commission, with President Ursula von der Leyen at the helm, has remained firm in its stance against returning to Russian energy supplies, citing reliability concerns.
The commission is proposing to ban new Russian gas deals by the end of 2025 and phase out existing contracts by the end of 2027, subject to parliamentary and member state approval.
Amidst these complex dynamics, Gazprom is reportedly considering offering German clients shorter-term contracts and significant price discounts to rekindle its European business.
However, the EU's broad opposition, ongoing legal disputes and the physical damage to pipelines, including the Nord Stream sabotage in September 2022, present significant challenges to any potential resumption of Russian gas exports to Europe.
