By Jan Strupczewski

BRUSSELS, (Reuters) – European Union leaders are expected to agree this week at a summit on reducing dependence on Russian oil, gas and coal imports. A draft statement indicated that it was a major turning point in the EU’s policy toward Moscow following Russia’s invasion.

The EU’s leaders will gather in Versailles Thursday and Friday to discuss the enhancing of their joint defense capabilities and Ukraine’s desire to be a member. [L8N2V445U]

These leaders were influenced by experiences of shortages in pharmaceuticals and microchips during the COVID-19 Pandemic.

According to Reuters’ draft statement, “We have agreed to reduce our dependence on Russian gas and oil imports”, the leaders said.

It will not be easy, though, as the EU imports almost half its gas from Russia, nearly a third its oil, and nearly all of its coal. If Russia decides to strike back at EU policy by reducing exports, this makes it vulnerable.

This decision is a significant turning point, as Germany had only one year ago been pushing for the Russian Nord Stream 2 pipeline to be operational. However, last year Italy and Austria were unable to do so. Hungary, Hungary, and Italy are all highly dependent upon Russian energy supplies.

However, leaders asserted that everything was changed by the Russian invasion.

“Russia’s war of aggression constitutes a tectonic shift in European history,” the leaders draft statement said.

“We were confronted with increasing instability, strategic competition, and security threats. We decided to take greater responsibility for our safety and take further decisive actions towards building European sovereignty, reducing dependence, and designing a new investment and growth model for 2030,” the statement read.

RENEWABLES, LIQUEFIED NATURAL GAS

Leaders stated that the EU will diversify its energy sources and routes by using liquified gas (LNG), and developing biogas and hydrogen.

Europe will encourage the growth of renewables as well as the production of the key components. EU member countries will link European power and gas grids to make it easier for European consumers. This will allow them to more effectively share their resources and synchronise the electricity grids. It also strengthens contingency planning and security of supply.

The draft also indicated that leaders will set goals to increase Europe’s share in the market for microchips by more than 20%.

EU will invest heavily in its digital technology, such as Artificial Intelligence and cloud computing, to grow its pharmaceutical industry and become a global leader in biomedicines.

The food sector will also be a focus. The draft statement by the leaders stated that they would improve food security through reducing dependence on imports of agricultural inputs and products.

Europe’s dependence on the United States for security has been a problem over the years. A policy that was criticized by Donald Trump and others, Europe now plans to spend more on defense.

Draft stated, “We agreed that we would increase significantly defence expenditures. With a significant portion for investment, focusing upon identified strategic shortfalls. And with defense capabilities which have been developed in a collaborative manner within the European Union.”