Kicking its Russia gas habit

The European Union is making strenuous efforts to curb Russian oil and gas. [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( The European Union’s recent ban on Russian coal wasn’t enough for Ukrainian President Volodymyr Zelenskiy, who demands an immediate halt to all energy imports to stop funding Vladimir Putin’s war. However justified the criticism of foot-dragging, the bloc is making strenuous efforts to curb Russian oil and gas. Key Reading: - [A New World Energy Order Is Emerging From Putin’s War on Ukraine]( - [Italy to Buy More Algerian Gas to Cut Russian Dependence]( - [Russia’s Invasion Supercharges Push to Make a New Green Fuel]( - [European Gas Rises as Orders for Russian Flows Via Ukraine Fall]( - [Germany Wrestles With Dependence on Russian Fossil Fuel]( - [Europe Moves to Arm Ukraine as Sanctions Fail to Sway Putin]( Germany, the EU’s biggest economy, is looking to cut off almost all Russian crude by the end of 2022. EU Commission President Ursula von der Leyen has set a goal of substituting nearly two-thirds of gas imports this year. The race is now on to replace all that energy. Italy, which relies on Russia for about 40% of its gas, said yesterday that it will boost imports from Algeria. Rome already takes gas from Algeria via pipeline, but much of Europe’s replacement supply will be in the form of liquefied natural gas shipments that require new infrastructure. Germany, which gets some 50% of its gas from Russia, is fast-tracking the construction of two LNG terminals. The U.S., Qatar and Nigeria are all being courted for LNG, but there are also moves afoot closer to home in the eastern Mediterranean. Frans Timmermans, the EU’s climate chief, was in Egypt on Sunday to discuss possible LNG supplies. Greece, Israel and Cyprus said yesterday they were looking at creating a joint LNG facility. Investment in all that fossil fuel infrastructure at a time of climate crisis is unpalatable to many, even if some LNG terminals can one day be retrofitted to handle green hydrogen. But in the short-term, there’s no way around it. As Germany’s Economy Minister Robert Habeck — a Green — concedes, political reality means getting your hands dirty. — [Alan Crawford]( The liquefied natural gas terminal in Dunkirk, France. Photographer: Jasper Juinen/Bloomberg Sign up [here]( for the Special Daily Brief: Russia’s Invasion of Ukraine and share this newsletter with others too. They can sign up [here](. Global Headlines Protracted phase | Ukraine’s president said he expects Russia to widen its [offensive]( in the east of the country this week as Moscow strives to seize the whole Donbas region, which has been partially occupied by self-proclaimed separatist republics. Zelenskiy was echoing a U.S. warning about “a more protracted and a very bloody phase” of the conflict. - U.S. President Joe Biden and Indian Prime Minister Narendra Modi yesterday discussed how to [counter]( the fallout from Russia’s invasion. Finland is set to kick off a process that is likely to culminate in an application to [join]( the defense alliance NATO. A new public opinion survey shows 84% of Finns think that Russia, their eastern neighbor, poses a significant military [threat](. That’s up 25 percentage points from a year earlier. Growth alert | Chinese Premier Li Keqiang issued a third warning about economic growth in less than a week, indicating heightened [concern]( about the outlook as widespread Covid-19 restrictions disrupt production and spending. Nomura Holdings said the risk of a contraction in the second quarter is rising if lockdowns are extended after April. - The vast majority of Shanghai’s 25 million residents are still [subject]( to restrictions that keep them in their homes or compounds. Debt default | Sri Lanka [warned]( creditors of a possible default and suspended some foreign debt payments to preserve its dwindling dollar stockpile for food and fuel imports. The announcement adds to pressure on President Gotabaya Rajapaksa and his brother, Prime Minister Mahinda Rajapaksa, to step down. Best of Bloomberg Opinion - [France Shows Every System Is Rigged in Its Own Way: John Authers]( - [Imran Khan’s Anti-Americanism Masks the Real Issue: Mihir Sharma]( - [Deadliest Weapon in Ukraine Is a Cell Phone: James Stavridis]( Charm offensive | Emmanuel Macron [mingled]( with crowds in parts of northern France that voted for his election opponent, Marine Le Pen, as he stepped up his bid to shed his image as “president of the rich.” Le Pen was also out campaigning yesterday, focusing on surging food and energy costs as a key theme ahead of the April 24 presidential runoff. - Macron and Le Pen are courting the 7.7 million people who [backed]( far-left veteran Jean-Luc Melenchon in the first round of the vote. Explainers you can use - [Climate Change Made Deadly African Cyclones More Severe]( - [How War and Sanctions Have Sparked Ruble Volatility]( - [What Are Ghost Guns, and What Is Biden Proposing?]( Balancing act | To ousted leader Imran Khan, Pakistan’s new prime minister, Shehbaz Sharif, is someone who conspired with the U.S. to remove his government and reorient the nation’s foreign policy. However, those close to the leader chosen by lawmakers yesterday describe a man adept at [balancing]( ties between powerful actors. Shehbaz Sharif on April 7. Photographer: Aamir Qureshi/AFP/Getty Images Bloomberg TV and Radio air Balance of Power with [David Westin]( weekdays from 12 to 1 p.m. ET, with a second hour on Bloomberg Radio from 1 to 2 p.m. ET. You can watch and listen on Bloomberg channels and online [here]( or check out prior episodes and guest clips [here](. News to Note - Taiwan issued its first war [handbook]( advising citizens how to respond in the wake of an attack, as Russia’s invasion of Ukraine raises fears of a Chinese incursion at home. - The impact of Covid-19, rising global inequality and soaring food prices are set to send more than a quarter-billion more people into [poverty]( this year, according to charity group Oxfam International. - The U.S. has criticized Hong Kong for the [arrest]( of a journalist on sedition charges, ramping up tensions over a Beijing-led crackdown on dissent in the former British colony. - Turkey’s chief prosecutor ordered 91 people detained on charges of links to outlawed Kurdish militants, [escalating]( pressure on the main Kurdish party ahead of next year’s election. - U.K. living standards fell at the [fastest]( pace in more than eight years in February as wages lagged further behind the rate of inflation. And finally ... Gabriel Boric moved to a residence in downtown Santiago in February, soon after being elected Chile’s president, intent on sending a [message]( about reviving areas fallen prey to crime and poverty. For years, those living in Yungay complained of abandoned lots infested with garbage, overcrowded homes and traffickers peddling drugs on various corners. [Eduardo Thomson]( writes that residents are already seeing benefits of the decision, with security improved and rentals climbing. Eduardo Berrios outside his Yungay neighborhood record store as police officers stop a vehicle with no license plate. Photographer: Tamara Merino/Bloomberg Like Balance of Power? [Get unlimited access to Bloomberg.com](, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. 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