According to ECB President Christine Lagarde, it is extremely difficult to replace energy imports from Russia in a short time. It takes time to rebuild the existing LNG supply chain, she stressed.
The head of the European Central Bank believes that supply agreements between EU countries and Russia need to be adjusted. Finding alternatives to Russian energy supplies is a tough task. This would be a long-term process and require funding, she noted.
A number of European governments are currently working hard to reduce their dependence on Russian energy. However, this takes time. Gas supplies from Russia cannot "be replaced overnight" as the country accounts for 22% of euro area energy imports.
Higher energy prices stemmed from increased geopolitical tensions amid the Russia-Ukraine conflict, Lagarde pointed out. At the same time, she expressed hope for a positive solution to the current situation.
Notably, in early March, US President Joe Biden announced a ban on Russian energy imports. Banned commodities included crude oil and products of its distillation, petroleum fuels, oils, coal and coal products, as well as liquefied natural gas (LNG).
