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EU Unveils Energy Plan To Cut Costs And Reduce Gas Dependence

The European Union is accelerating efforts to secure energy independence and shield industries from volatile energy prices. Its latest strategy focuses on fast-tracking renewable energy development, reshaping the gas market, and cutting reliance on Russian energy imports.

Key Initiatives: Breaking Free From Russian Gas

The EU remains focused on diversifying its energy supply, particularly in reducing reliance on Russian gas. Although pipeline imports have plummeted in recent years, liquefied Russian gas (LNG) shipments to the bloc actually increased in 2024. Brussels aims to eliminate all Russian energy imports by 2027.

Next week, the European Commission will unveil a sweeping industrial support package, including plans to strengthen ties with LNG suppliers and expand infrastructure for exporting LNG. Strict market regulations will also be introduced to curb speculative trading that leads to price spikes.

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“Instead of using taxpayers’ money to pay for Russian gas while the proceeds go directly to Vladimir Putin’s coffers, the EU should do everything possible to start producing its own energy. However, there is still a need for gas, and we will have to find sources other than Russia. This could also mean more imports from the US,” said EU Energy Commissioner Dan Jorgensen.

Europe’s New Energy Model

The US has become the EU’s primary LNG supplier, especially after the 2022 war in Ukraine drastically cut Russian gas flows. The European Commission does not purchase gas directly but is working on new strategies to secure stable, long-term LNG contracts modeled after Japan’s approach—where Tokyo finances export infrastructure to lock in favorable agreements.

Under EU law, existing gas contracts must end by 2049 to meet the bloc’s 2050 net-zero emissions goal. While renewable energy adoption is expanding, electricity prices remain linked to the cost of gas. The Commission is now preparing a demand-pooling mechanism, allowing European companies to negotiate collective LNG supply deals to hedge against market volatility.

The final version of the energy package will be officially released on February 26, with potential revisions before publication.

Navigating Tensions With The US

The EU’s energy transition is further complicated by geopolitical tensions with Washington. President Donald Trump has warned of trade tariffs if Europe does not increase oil and gas imports from the US. With EU-US trade reaching a record $1.29 trillion in 2021, any disruptions could have widespread economic consequences.

Trump’s administration is also ramping up tariffs on key European exports, including steel, aluminum, cars, and pharmaceuticals. Expected retaliatory measures from the EU could escalate tensions, further challenging Europe’s efforts to balance energy security with trade relations.

Bitcoin Surges 23% In A Week As Investor Optimism Returns

Bitcoin was on track for a weekly gain of around 23% on Friday as a series of positive macroeconomic and policy developments boosted investor sentiment.

The cryptocurrency was trading about 6% higher at roughly $77,000, up from around $62,800 at the start of the week. Crypto-related stocks also rallied, with Coinbase and Circle gaining more than 9%, while Strategy rose 7%.

Macro Factors Fuel Rally

Bitcoin’s latest surge began Wednesday after Treasury yields fell sharply following a major intervention by the U.S. Treasury in the bond market. Lower yields eased pressure on risk assets and helped trigger a broader move into cryptocurrencies.

The rally was further amplified by a major short squeeze. Around $2.7 billion in crypto short positions were liquidated, according to CoinGlass.

Max Stuedlein, head of Partnerships at Sygnum APAC, said the move reflected an alignment of macroeconomic and policy catalysts, including the Treasury’s decision to increase buybacks of longer-dated government debt.

Clarity Act Boosts Sentiment

Investor confidence improved further on Thursday as the White House and crypto industry leaders made a final push to advance the Clarity Act in the coming weeks.

The legislation is widely viewed as a potential catalyst for the crypto market, although its chances of passing remain relatively limited.

Despite the rally, bitcoin remains well below its 2026 high of $94,820 reached in January and its all-time high of $126,198, set last October.

Analysts See More Volatility Ahead

Lucy Gazmararian, founder and managing partner at Token Bay Capital, said the crypto market may be approaching the end of its bear cycle.

She expects bitcoin could experience one more decline of around 20% before the market turns, pointing to historical cycles and the recent liquidation of heavily leveraged short positions.

Gazmararian also described bitcoin as a long-term hedge against monetary debasement, while warning that its short-term price remains highly volatile and driven by market cycles.

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