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EU to supply electricity power to Ukraine on urgent basis amid war

BRUSSELS, Feb 28 (Reuters) – The European Union’s power ministers on Monday urgently agreed to link Europe’s energy system with Ukraine’s electricity, a step that will increase its independence under Russia following Moscow’s invasion of the country.

Ukraine’s invasion of Russia by Russia, the largest gas company in Europe, has raised concerns about power supply disruptions and has led European Union countries to rely on imported oil.

It also raised concerns about Ukraine’s power system itself, with EU ministers on Monday backing a long-running planned grid for Ukraine and Europe’s power grid. Learn more

“There has been a comprehensive agreement on the table. Based on this, we will move forward … to connect Ukraine’s electricity system as soon as possible,” EU energy commissioner Kadri Simson said after the meeting.

Ukraine cut off its grid from the Russian system last week and called for urgent synchronization with the European system. That could mean that Russia will no longer be able to control the technical aspects of the Ukrainian network such as the grid frequency. EU officials have said the link could be finalized within weeks.

Simson said it was possible for Russia to take “retaliatory measures” that affect Europe’s ability to respond to sanctions from the West, but that existing levels of gas storage and rising liquefied natural gas (LNG) could see Europe this winter.

The Commission next week will raise the requirement for countries to replenish gas reserves at low levels before winter, to strengthen countries against commodity shocks and prices, according to a draft plan identified by Reuters.

The proposals will also include measures to increase renewable energy rapidly, as Brussels reiterates the need to stop relying on fossil fuels – not just to combat climate change, but as a matter of safety. Learn more

To meet its 2030 climate target, the EU expects to reduce gas consumption by more than 25% from 2015 levels, although gas is expected to retain a significant portion of Europe’s energy mix for at least the next decade.

“We must work to improve low-carbon, renewable energy sources so that we do not have to rely too much on electricity,” said French Environment Minister Barbara Pompili, who chaired the ministerial conference.

Russia supplies about 40% of Europe’s gas. EU law requires all member states to have a plan to respond to gas supply shocks, which they have reviewed in recent weeks.

Analysts say a complete or long-term suspension of Russian gas exports to Europe will have serious economic consequences, requiring urgent measures such as a factory closure.

Dutch gas prices for the previous month rose by almost 11% on Monday amid concerns about possible Russian flow disruptions. Gazprom said it supplies gas to Ukraine in line with the needs of European consumers.

EU ministers also discussed a proposal from Greece to set up a new EU fund that would provide low interest rates to help governments finance high tariffs. Learn more

Rising fuel prices in recent months have raised domestic and industrial debt, prompting governments in 27 EU countries to provide subsidies and tax breaks.

“We must not underestimate the impact of Russia’s attack on electricity prices and electricity security,” said Greek Energy Minister Kostas Skrekas.

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