The EU will transition from Russian suppliers with US energy investment of $750 billion

european union It reduces Russia’s reliance on energy supply and invests in liquefied natural gas (LNG), oil and nuclear fuel from the US, marking a major boost for the US energy sector.

president Donald Trump On Sunday it was announced that a “groundbreaking trade agreement” had been held between the US and the EU. This will allow the European Union to purchase $750 billion worth of energy from the US during the remainder of Trump’s term. These include spot purchases of oil, long-term LNG contracts, nuclear technology, and the amount estimated during the European planning stage of energy purchases from Russia.

“We will also increase energy cooperation. The purchase of US energy products will diversify our sources and contribute to Europe’s energy security,” said Ursula von der Leyen of the European Commission in a statement over the weekend after meeting with Trump in Scotland.

Andy Lipow, president of Lipow Oil Associates, told Fox Business that “we will solidify our energy connections as the US continues to be a major exporter of crude oil and refined products and grow our LNG export business.”

Transactions come at key moments too. The EU is imposing sanctions on Russia. This will affect refineries in China and India, which were converting Russian oil into diesel and selling it to Europe. Lipco said Europe will look to the US to make up for the losses.

“If the US places sanctions on countries that still buy Russian oil, it is likely that the US and Europe will be even closer when it comes to energy cooperation,” he added.

Under the contract, the EU said it will invest another $600 billion beyond its existing commitments. The figures are based on a combination of investment intent expressed by European companies, but the ultimate actions of these private companies go beyond control of the EU, the bloc of economic and government.

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The US-EU trade agreement framework also shows that EU countries commit to purchases US military equipmentalthough the amount is not specified by the transaction.

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von der Leyen continued to say there is a deal between the EU and the US. “We create certainty in times of uncertainty.”

“It provides stability and predictability. She added that the US and the EU trade $1.7 trillion each year, representing a market of 800 million and accounting for nearly 44% of the global economy.