MOSCOW—The natural gas shortage that drove prices to records in Europe has exposed Russia’s rising leverage over global energy markets, with Moscow now playing a key role in everything from OPEC negotiations to coal exports to China.
Russia, the world’s largest exporter of gas in the world and the source of more than a third of Europe’s gas, has emerged as a critical supplier with the power to quickly alleviate the continent’s gas deficit.
Western officials accuse the Kremlin of trying to score geopolitical points by withholding extra supplies, a charge Moscow denies. Moscow instead says it is the troubleshooter in volatile global energy markets. Moscow denies it is exploiting its huge energy reserves for political gain.
Moscow’s leverage was on display last week when gas prices dropped suddenly following comments by President
that Russia would help stabilize the energy market.
In the oil market, Russia has in recent years increased its influence over the Organization of the Petroleum Exporting Countries, despite not being a formal member. In Asia, Moscow has become a significant energy player, starting gas exports to China in 2019 and increasing coal deliveries there this year. Coal plays a major role in powering the Chinese economy.
Russian President Vladimir Putin at a meeting on the development of the Russian energy industry on Oct. 6.
Photo:
Alexei Druzhinin/Kremlin Pool/Reuters
“The European gas crisis has shown the extreme leverage that Russia has over Europe and beyond,” said Thierry Bros, an energy expert and professor at Sciences Po Paris. “Putin is the only one who could prevent blackouts in Europe because Russia has spare capacity. This is a position of power.”
European countries such as Germany have said that Russia is fulfilling its long-term contracts. However, European officials say Russia is deliberately withholding gas from the short-term spot market and lawmakers called for a probe into Russia’s manipulating the market.
The International Energy Agency said last month that “Russia could do more to increase gas availability to Europe and ensure storage is filled to adequate levels in preparation for the coming winter heating season.”
Last week, Mr. Putin said Europe made a mistake when it shifted more of its supplies to the spot market and Moscow has urged Europe to move toward more long-term contracts.
“Nothing can be delivered beyond the [existing] contracts,” Kremlin…
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