The BRICS (Brazil, Russia, India, China and South Africa) have overtaken the USA in gas trade with Europe for the first time in almost two years. BRICS member Russia is now the leading supplier of liquefied natural gas (LNG) to Europe, surpassing the USA despite sanctions.
Russia, Europe's main LNG supplier
Russia has initiated gas trade agreements with Europe and other countries despite US sanctions. Vladimir Putin's administration has succeeded in circumventing the sanctions and concluding agreements with Europe, Africa, Asia and its BRICS partners. Deliveries of liquefied natural gas (LNG) from Russia to Europe reached a record high of 15% in May 2024. By contrast, LNG deliveries from the USA to Europe fell to 14% over the same period.
The United States, a competitor in decline
The USA used to be the main supplier of liquefied natural gas (LNG) to Europe, but has now been overtaken by Russia. However, according to Tom Marzec-Manser, head of gas analysis at Consultancy ICIS, Russia's supremacy in Europe's liquefied gas (LNG) sector won't last long. "Russia has limited flexibility to maintain this share (in Europe) as demand increases next winter. While US liquefied gas (LNG) production continues to grow with new capacity coming on stream at the end of the year," he explained.
Implications for international trade
This raises important questions about the implications for international trade. The BRICS are seeking to control the global oil and gas sector in order to strengthen their economic and political influence. If the BRICS succeed in their objectives, this could lead to a reduction in the influence of the US dollar on the international market.
