The impact of the Russia-Ukrainian war on green energy financing in Europe

Abstract

The energy crisis started because of the war between Russia and Ukraine and European countries’ imposition of economic sanctions. Russia supplies 40% of gas and 25% of crude oil to most European countries. In retaliation for the sanctions, Russia required the purchase of its gas and oil in its ruble. However, this policy was rejected by European countries, resulting in reduced energy supply as the price of gas and oil rose. European countries are trying to reduce Russia’s energy dependence by looking for environmentally friendly energy alternatives. As the first step, European countries increase the budget for developing environmentally friendly energy. This paper use data from the European Commission (EC), Eurostat, Greenmatch, and the World Bank. The author finds that European countries have increased the budget for developing and using environmentally friendly energy to remove the dependence on gas and oil energy from Russia. European countries believe that environmentally friendly energy can become the primary energy resource in the future.