Europe looks to US, Qatar gas to reduce reliance on Russia

Russia's actions in Ukraine have taken Europe by surprise – and will likely intensify efforts to look elsewhere for gas, says Ian Bond of the CER.

"Also to look at other sources like Qatar and Algeria, so sources of Liquefied Natural Gas. And maybe even in the slightly longer term to persuade the Germans to turn their nuclear power stations back on, which would sharply reduce the demand for Russian gas," he said.

 The range of alternatives give Europe leverage, says Ian Bond. "Russia depends very heavily on the revenues from the gas that it sells to Europe. At least half of the national state budget comes from sales of hydrocarbons to Europe," he said. "And although in the winter it would be true that Europe would freeze before Gazprom would go bankrupt, in the summer Europe has more levers."