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Russia is better prepared for Western sanctions than EU to gas supply cuts - Borrell

"Russia has enhanced its resilience against economic sanctions, by increasing its foreign currency reserves, more than we have done to enhance our capacity to face potential gas supply cuts", EU foreign policy chief said

BRUSSELS, February 7. /TASS/. Russia has done more to enhance its resilience against economic sanctions than the European Union has done to boost its capacity to cope with possible gas supply cuts, EU foreign policy chief Josep Borrell said on Sunday.

Borrell made the comments in his blog ahead of traveling to the US for the EU-US Energy Council that will take place on Monday. Over the past few months, Brussels and Washington regularly state they are ready to impose severe economic sanctions against Moscow in the event of hypothetical aggression against Kiev. They haven't elaborated on details while many EU countries worry the restrictions could prompt Russia to halt natural gas supplies to Europe.

"In recent years, Russia has enhanced its resilience against economic sanctions, by increasing its foreign currency reserves, more than we have done to enhance our capacity to face potential gas supply cuts," Borrell said. "We should urgently consider developing EU strategic gas reserves and the possibility of joint gas purchasing, as the [European] Commission has suggested."

The global gas price crisis has already taken a toll on the EU, the top diplomat said.

"Energy prices have surged due to global supply and demand issues," he said. "Gas prices in the EU are six to ten times higher than they were a year ago, putting great strains on electricity prices."

Borrell said the price rally spurred inflation in the euro zone in 2021 and could further boost inflation this year, which would "seriously affect the post-pandemic recovery."

EU foreign policy chief said Russia "has already in the past used energy supplies for political purposes."

"In recent weeks, although Russia has been fulfilling strictly its contractual commitments, the Russian-state owned Gazprom has refused to send additional supplies to re-fill European storage facilities, creating further nervousness in the market," he said.

Borrel said the EU intends, over the long term, to seek a solution to its energy needs by a transition to renewable energy. However, in the short term, Brussels will seek to ensure stable gas supply through greater imports of liquefied natural gas, or LNG.

"The US already is Europe’s largest Liquefied Natural Gas (LNG) supplier, and we are intensifying our cooperation to ensure that our gas supplies are safe throughout the months to come," he wrote.

He also said the EU is in talks with Norway, Qatar, Azerbaijan, Algeria to expand LNG supplies.