Russian President: deal between Moscow and Washington may boost gas supplies to Europe

After Russian President Vladimir Putin confirmed that a bilateral contract with Washington would increase domestic gas supplies to the EU, natural gas prices in Europe fell by 5%. The region had previously turned down huge volumes of imported fuel in order to become less dependent on third countries.

Bloomberg reports that American and Russian officials are currently negotiating to strengthen energy and security cooperation. If they reach a mutually beneficial outcome, they will be able to build a new gas pipeline to Europe. Mr. Putin believes this system would provide the EU with cheap fuel from Russia. 

Until 2022, Russia was Europe's largest gas supplier. The country used multiple routes to transport the energy resource for power and heating. However, Russian exports through Ukraine and the Baltic Sea were halted by a series of political events. 

Restoring gas transit now requires further negotiations, analysts told Bloomberg.