EU to map out escape route from Russian fossil fuels on Wednesday

Anil Panchal FXStreet

The European Commission will on Wednesday unveil a 210 billion euro plan for how Europe can end its reliance on Russian fossil fuels by 2027, and use the pivot away from Moscow to quicken its shift to green energy, per Reuters.

Key quotes

To wean countries off those fuels, Brussels will propose a three-pronged plan: a switch to import more non-Russian gas, a faster rollout of renewable energy, and more effort to save energy, according to draft documents seen by Reuters.

The draft measures, which could change before they are published, include a mix of EU laws, non-binding schemes, and recommendations national governments could take up.

Taken together, Brussels expects them to require 210 billion euros in extra investments - which the EU plans to support by freeing up more money for the energy transition from its COVID-19 recovery fund, and which would ultimately reduce the billions of euros Europe spends on fossil fuel imports each year.

Market reaction

The news favors the WTI crude oil prices to regain $111.00 during otherwise quiet hours of early Asian session on Wednesday.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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