• Analysis and Studies
• European Union energy market: an overview

After experiencing a substantial rise in energy imports within the European Union (EU) between 2021 and 2022, the situation has taken a different turn in 2023. For the second consecutive quarter when compared to the same period in the previous year, there has been a decline in imports.

During the second quarter of 2023, in comparison to the same quarter of 2022, EU imports have witnessed a notable decrease. Specifically, there has been a 39.4% reduction in terms of import value and an 11.3% decrease in net mass (measured in tons). These figures come on the heels of declines of 26.5% and 6.1% in the first quarter of this year, respectively.

Concerning net mass, Russia's proportion of EU imports in petroleum oils and natural gas has been consistently diminishing since the second quarter of 2022. For instance, imports of petroleum oils from Russia have plummeted from a monthly average of 8.7 million tons in the second quarter of 2022 to merely 1.6 million tons in the second quarter of this year, marking an 82% decrease. In contrast, imports from sources outside the EU, excluding Russia, have surged by 5.8 million tons, climbing from 31.5 million to 37.3 million tons.

Notably, Russia's share in the overall EU imports of petroleum oils in the second quarter of 2023 stands at 4.0%, a striking contrast to the 21.6% share registered in the same quarter of the previous year.

Russia's aggressive actions in Ukraine prompted the European Union (EU) to impose multiple rounds of sanctions, which have had both direct and indirect effects on the trade of oils and natural gas. These sanctions have now led to a noticeable shift in the EU's energy supplier landscape, promoting greater diversification.

In the context of petroleum oil, the EU initiated a ban on seaborne imports of Russian crude oil on December 5, 2022, followed by an embargo on refined oil products starting on February 5, 2023. These measures have had a substantial impact, particularly on the results observed in the first and second quarters of 2023.

During the second quarter of 2022, Russia held the position of the leading supplier of petroleum oils to the EU, commanding a substantial 15.9% share of the total EU imports. However, by the second quarter of 2023, Russia's ranking had plummeted to 12th place, with its share reduced to a mere 2.7%, marking a significant decline of 13.2 percentage points compared to 2022.

In contrast, other key energy suppliers saw their shares rise over the same period. Notable increases were observed for Norway (up to 13.7%), Kazakhstan (up to 10.2%), the United States (up to 13.6%), and Saudi Arabia (up to 9.0%). Additionally, Libya emerged as a significant partner, contributing to 8.1% of EU petroleum oil imports.

The situation for natural gas in a gaseous state mirrored the trends seen in petroleum oil imports. Russia's share in the EU's natural gas imports experienced a notable decline, dropping by 14.5 percentage points to reach 13.8% of the total EU imports. Conversely, other natural gas suppliers witnessed significant increases in their market shares. Notably, Algeria's share surged, and Norway's share increased. In the second quarter of 2023, Norway emerged as the leading supplier of natural gas to the EU, holding a substantial 44.3% share of the total EU imports. It was followed by the United Kingdom, which contributed 17.8%, and Algeria, which accounted for 16.5% of the EU's natural gas imports. This shift in natural gas suppliers reflects the EU's efforts to diversify its sources and reduce its reliance on Russian natural gas due to geopolitical concerns.