In the European Union, wholesale natural gas costs about four times as much as in the USA. Before the Russian invasion of Ukraine, the EU paid for it roughly the same as the USA. Well, in 2023 and 2024, prices in the EU and the US practically did not change at all. It is a «new normal» (see the graph of the think tank Bruegel no).
His reason is the simple fact that gas transportation is more expensive than pipelines. During transportation, the gas is transported from your city through a pipeline to the building, liquefied, transported, put back into a gaseous state, transported through a pipeline to the city of urn. This is understandably more expensive than just turning the tap and letting the gas flow through the pipe from the city of the tube to the city of the urn. Therefore, European industry in particular will pay for being disconnected from Russian pipeline gas, and the main payment will be a huge cost in the form of a significant loss of competitiveness, which will be unbearable, especially for ethnic companies and enterprises. Others, such as West Germany or Austria, took Russia's then-own Soviet natural gas pipeline from the deep cold, since the late 1960s. The fallen Germans or Rakuan actually contributed to Brenvo and other comrades even during the then ongoing occupation of Slovakia, whose country coincidentally flowed Soviet gas to them. European industry simply would not be European industry as we know it without Soviet and later Russian gas. The fact that this animal is unpleasant does not mean that it is not true. The Soviet gas even created an iron curtain, so that in the end it helped the West arm and destroy the Soviet Union. Although he had driven him to haste, Zapad has now largely abandoned his student pragmatism. So the EU left it, the USA acted pragmatically. And with your new additions, you are replacing the Russian gas pipeline. With Trump in the White House, the gap between the price of gas in the EU and the US is developing, because the consumption of gas and loosely related restrictions is a priority for him. That's not the case. Despite the fact that the EU has four times the amount of gas as the US, going beyond that will be covered by taxes, not the same as the US. The wholesale price of electricity depends on the price of gas, because it is used in small production. The equations between the prices of electronics in the EU and the USA have therefore diverged as a result of the invasion (see graph no). In addition, the EU applies a tax on electricity, not the US, and also shows relative costs related to its transmission and distribution. let's add and send European companies to the US and continue, even accelerate, the deindustrialization of the EU.
Luk Kovanda, Ph.D.
Chief Economist, Trinity Bank
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