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EU faces trade war threat from Trump over LNG imports

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US President Donald Trump is threatening the EU with a trade war unless it buys more US oil and gas. However, while Brussels has signaled that it is open to the idea, it lacks purchasing power, and European countries are importing record amounts of cheaper liquefied natural gas (LNG) from Russia.

According to the Financial Times (FT), the question of whether Europe can act as a bloc and buy more American fuel is creating significant uncertainty over transatlantic relations after the US president took office on Monday.

In a post on social media last month, Trump said: “Buy our oil and gas on a large scale. Otherwise, every road is TARIFF!!!” he warned.

EU still sceptical about American LNG

Shortly after her re-election, European Commission President Ursula von der Leyen also backed the idea, asking, “Why not replace [Russian gas] with American LNG?”

However, officials and analysts told the FT that the EU’s executive branch is not a gas buyer and cannot do more than inform Trump that European companies are interested in American LNG.

The bloc had pledged to buy more LNG from the US in 2022. Officials say there are no immediate plans to update this pledge. “What conditions do we have to put forward for this to happen? We’re not going to review everything on 21 January,” he said.

American lobby group pushes for bypassing Russia

The underlying problem, according to the FT, is that the EU cannot give up cheaper Russian fossil fuels. Last year, EU companies imported record amounts of LNG from that country.

“This LNG should come from the US,” said Mike Sommers, CEO of the American Petroleum Institute, the largest US oil and gas lobby group.

Fearing a supply crunch after Moscow’s gradual shutdown of pipeline gas to Europe, the EU has refrained from banning LNG, as it did with Russian coal, or imposing a price ceiling on tanker-shipped Russian LNG, as it did with Russian oil.

Biden administration refrained from putting Yamal on the sanctions list

Instead, the bloc set an indicative target to completely phase out all Russian fossil fuels by 2027 and allowed governments to ban the country’s exporters from using EU gas infrastructure.

Some ministers complained that this was not enough to force companies to break existing contracts. According to EU diplomats involved in the negotiations, LNG could be included in a new round of sanctions, but this would require the unanimous approval of all 27 member states, which Hungary and Slovakia are likely to oppose.

The Joe Biden administration added two small Russian LNG facilities to the US sanctions list in January but refrained from including Yamal, a large terminal supplying Europe and other parts of the world.

As one of his first acts in office, Trump pledged to lift the freeze on new LNG export capacity imposed by the previous administration.

The EU also has the opportunity to import more from regasification terminals, which convert the liquefied fuel shipped back into gas.

Energy costs are still the biggest issue

However, price sensitivity is a significant problem, according to the FT. At the same time as appeasing Trump, the EU is struggling to protect its industries and reduce high energy prices, especially in Germany, Europe’s largest economy.

Gas prices in the EU are more than three times higher than in the US and remain stubbornly high at more than twice the level before the Ukraine war.

“The price issue is a sensitive and decisive one,” said a senior EU official.

DIPLOMACY

Fidan and Rubio discuss Syria, Gaza, and defense in US meeting

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Minister of Foreign Affairs Hakan Fidan and his accompanying delegation began a two-day visit to the US.

During the visit, Fidan met with US Senator Marco Rubio. According to a statement attributed to US State Department Spokesperson Tammy Bruce, the two discussed cooperation on key issues in security and trade.

Rubio requested Turkey’s support for peace in Ukraine and the South Caucasus, while appreciating Ankara’s leadership in the “Global Coalition to Defeat ISIS.”

According to the spokesperson, the American senator reiterated the need for close cooperation to support a “stable, unified, and peaceful Syria,” stating they do not want Syria to be “either a base for international terrorism or a pathway for Iran’s destabilizing activities.”

Rubio also highlighted recent progress in bilateral trade and encouraged an even greater economic partnership moving forward.

Finally, the Senator expressed concerns regarding the recent arrest of Ekrem Imamoglu in Turkey and the subsequent protests.

Turkey has not made an official statement: AA reported based on ‘foreign ministry sources’

According to Turkish Foreign Ministry sources cited by AA, Fidan and Rubio emphasized the “importance of engaging with the Syrian government” during their meeting on Tuesday.

The sources stated, “Both sides emphasized the importance of engaging with the Syrian government and expressed their determination regarding the stabilization of Syria and the fight against terrorism.”

According to the sources speaking to AA, Fidan and Rubio discussed a range of regional and bilateral issues, including the need for a permanent ceasefire in Gaza, deemed essential for “regional peace.”

The sources also mentioned that the issues discussed in the phone call between President Recep Tayyip Erdogan and US President Donald Trump on March 16 were followed up on during the meeting.

The two sides also discussed preparations for upcoming presidential-level visits and expressed their determination to remove obstacles to defense cooperation.

The report added, “Both sides clearly expressed their political will to remove obstacles to cooperation in the defense industry. Technical meetings will be held to resolve existing issues.”

The two sides also discussed efforts to achieve a ceasefire between Russia and Ukraine, with Turkey expressing support for recent US efforts in this direction.

The talks also covered the ongoing peace process between Azerbaijan and Armenia and the importance of Bosnia and Herzegovina’s stability for the entire Balkan region.

Is Hamas on the table?

Meanwhile, Trump, during a White House meeting with a group of US Ambassadors confirmed by the Senate, referred to Turkey and Erdogan as a “good country, a good leader.”

The new US Ambassador to Ankara, Thomas Barack, was also present at the meeting. Barack, known as a close friend of Trump and a real estate magnate, thanked the President for appointing him to Turkey, “one of the ancient civilizations.”

In an article penned by Murat Yetkin in Yetkin Report, it is alleged that Trump might engage in bargaining over Hamas and Gaza in exchange for steps such as lifting CAATSA sanctions against Turkey.

Yetkin relays that CHP leader Ozgur Ozel, in a statement on March 18, referred to the Trump-Erdogan phone call, criticizing the lack of mention of Gaza and Israel, and accused Erdogan of “selling out the Palestinian cause for Trump.”

Recalling that Trump’s special representative Steve Witkoff told Tucker Carlson in an interview that they expect “good news” from Turkey, Yetkin underscores that Witkoff also stated elsewhere in the interview, “A terrorist organization cannot run Gaza; this is unacceptable for Israel. But their disarmament is possible. Then they can stay for a while longer and even get involved in politics.”

Yetkin asks, “Is Trump supporting Erdogan because of a plan to disarm the PKK and Hamas together?” while also noting that the Secretary of the PLO Executive Committee, Hussein al-Sheikh, met with Foreign Minister Fidan in Ankara on March 19, before Fidan flew to the US.

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DIPLOMACY

Agreement reached on Black Sea navigation safety between US, Russia, and Ukraine

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According to a statement from the White House, the US has reached an agreement with Ukraine and Russia to ensure navigational safety in the Black Sea.

It was stated that both sides agreed to refrain from using force and would not permit commercial vessels to be used for military purposes.

In return, the US will assist Russia’s return to the global market for agricultural products and fertilizer exports, reduce maritime transport insurance costs, and expand access to ports and payment systems for such operations.

Additionally, Washington has reached an agreement with Kyiv and Moscow to halt mutual attacks on energy facilities.

The White House stated, “The US will continue to facilitate negotiations to achieve a peaceful resolution between the two sides.”

Simultaneously, it insists on fulfilling US President Donald Trump’s demand to “stop the killings on both sides.”

Ukrainian Defense Minister Rustem Umerov confirmed the agreement but claimed that “Russia moving its warships outside the eastern part of the Black Sea would be considered a violation of the spirit of this agreement,” a breach of obligations to ensure freedom of navigation, and constitute “a threat to national security.”

Umerov asserted that in such a situation, Ukraine would “exercise its right to self-defense.”

Umerov also reported that the presidents of all parties agreed to implement agreements on a complete cessation of attacks on the energy infrastructure of Ukraine and Russia.

Furthermore, according to Umerov, the US confirmed it would assist with prisoner exchanges, the release of civilian detainees, and the return of forcibly displaced Ukrainian children.

A provision to this effect is also included in the White House statement.

“Effective implementation of the agreements will require additional technical consultations to coordinate all details, including ensuring monitoring and control of the agreement,” Umerov added.

Russia confirmed its agreement not to use force in the Black Sea amid the ongoing war with Ukraine.

However, Moscow insists on inspections to prevent the use of commercial vessels for military purposes.

The Kremlin also emphasized that compliance with the Black Sea ceasefire would begin after sanctions related to Russia’s food and fertilizer exports are lifted.

Specifically, this involves connecting the Russian Agricultural Bank (Rosselkhozbank) to the SWIFT system and opening necessary correspondent accounts.

Besides this, Moscow expects the removal of restrictions on food and fertilizer producers and exporters, and the elimination of obstacles for insurance companies working with such cargo.

Another point is the lifting of sanctions on Russian-flagged vessels used in the trade of these products and the removal of restrictions on their servicing in ports.

Finally, the Kremlin demanded the resumption of unobstructed supplies of agricultural machinery to Russia.

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DIPLOMACY

Athens postpones Mitsotakis-Erdoğan meeting after Imamoglu arrest

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The arrest of Istanbul Mayor Ekrem Imamoglu has shaken diplomatic relations between Türkiye and Greece, leading Athens to announce the postponement of a planned meeting between the leaders of the two countries.

Greek government spokesperson Pavlos Marinakis stated, “Given these developments, it is becoming difficult to organize the High-Level Cooperation Council between Greece and Türkiye immediately.”

The High-Level Council consists of a series of meetings aimed at improving relations through “soft politics,” as progress on contentious issues such as territorial disputes has stalled.

As Kathimerini recently reported, the meeting planned between Greek leader Kyriakos Mitsotakis and Recep Tayyip Erdoğan on April 8 was not yet finalized due to the political crisis in Türkiye, even though negotiations between Athens and Ankara had reached their final stage.

The spokesperson added, “We are monitoring the developments in Türkiye. The situation remains fluid and concerning. Our stance on Imamoglu has not changed. Concessions on the rule of law and political freedoms are unacceptable, and convincing answers are needed for any concessions made.”

Marinakis mentioned that the issue could be discussed by the foreign ministers of both countries at the NATO foreign ministers’ summit in Brussels in early April.

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