Europe shifts energy dependency from Russia to Norway and the US

European energy markets are undergoing a significant shift in dependency. While the EU has successfully reduced its reliance on Russian gas, new dependencies have emerged. Data from Eurostat indicates that Norway now accounts for over 50 percent of pipeline gas imports to the EU. Algeria follows as the second largest supplier, holding an 18 percent share of the value of imported gas.

In the liquefied natural gas (LNG) market, the United States has established a dominant position, accounting for more than 63 percent of the market share as of the second quarter of 2026. Russia maintains a 17 percent share of LNG imports by value. Notably, the value of Russian pipeline gas imports remains higher than its volume, challenging claims that Russian gas is exceptionally cheap for European consumers.

Concurrently, the Russian economy faces structural challenges. Analysts suggest that high energy prices are insufficient to offset declining investments, high interest rates, and labor shortages. While the Russian government anticipates a 1 percent GDP growth this year, experts warn that a strengthening ruble and falling oil and gas revenues—which reportedly fell 16 percent in August compared to the previous year—could hinder long-term economic stability.