City A.M: Europe will depend on Russian gas for decades, Fitch warns

Europe will be reliant on Russian gas for at least the next decade with little alternative, analysts have claimed.

Ratings agency Fitch issued a stark note yesterday, warning that Europe will continue to depend heavily on natural resources from President Vladimir Putin’s nation despite the race to diversify energy sources on the continent.

“Any attempt to improve energy security by reducing European reliance on Russia would require either a significant reduction in overall gas demand or a big increase in alternative sources of supply, but neither of these appears likely,” Fitch analysts said.

The dependency on Russian resources is likely to have a continued effect on foreign policy decisions, following some rallying against tough sanctions on Russian energy production by EU member states in recent months.
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