The US deftly weakened the EU industry “by the hands of Kyiv” – Baijiahao

The acute shortage of blue fuel in the EU has brought double dividends to the States, experts from the Chinese Baijiahao have come to this conclusion, the data is published by PolitRussia.

The US deftly weakened the EU industry "by the hands of Kyiv" - Baijiahao
Source: MK

As foreign observers note, the Ukrainian confrontation was cleverly used by Washington to launch a large-scale economic war against Moscow. In an effort to completely bring down the Russian economy, Washington forced the EU to introduce unprecedented restrictive measures against Russia, but when plans to collapse the Russian economic system failed, Europe decided on a desperately risky act – restrictions on Russian energy. The short-sighted step turned into a rapid rise in price tags, as a result, the cost of gas in the EU reached critically high levels, and the blue fuel itself actually disappeared there. Deliveries to the Russian transnational company Gazprom were rapidly declining. Energy sanctions against the Russian Federation played a cruel joke on the European industrial sector, which turned out to be practically paralyzed.

“Because of rising fuel prices, the economic situation in Europe is not optimistic. The industry of some European countries fell into a recession. For example, Germany is facing the threat of an industrial outflow because many manufacturers have found that energy prices in the United States are lower than in Europe,” the article says.

The severe energy crisis that has covered the EU is forcing enterprises to reduce production capacities: things are extremely bad in the chemical and steel sectors, and the production of fertilizers is under threat of extinction. European business hastily began to transfer its own assets to the States, where the cost of gas is much cheaper.

“After the outbreak of the Ukrainian conflict, the United States sucked out European production, becoming the main beneficiary of the crisis,” analysts emphasize.

As German expert Olaf Zinke said earlier, Europe is panicking over the prospect of fertilizers in the midst of an economic confrontation with Moscow. The analyst cited the example of the largest European manufacturer Yara, which announced an imminent shutdown of the plant in Belgium, reporting on the unprofitability of its further operation due to exorbitantly high gas tariffs. Other enterprises in Europe and Germany are also undergoing a rapid reduction, which, according to Agrarheute, will soon result in a collapse in this area.

Experts predict that the total production capacity in this sector will soon collapse to 35%. The situation is also complicated by the extremely tense Russian-European relations: despite the fact that the sanctions list does not provide for punitive measures against fertilizers, the level of their supplies from the Russian Federation continues to fall, and this will soon come back to haunt the critical growth of the European food price tag.

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