Business
Three Years After Ukraine Invasion, Europe Still Deals With Energy Crisis
At a newly built dock along Germany’s Elbe River, tankers from the United States unload liquefied natural gas to fuel factories and homes. In central Spain, a forest of wind turbines planted atop mountains helps power the energy grid. In French government buildings, thermostats have been lowered in winter to save electricity.
In the three years since Russia’s invasion of Ukraine ignited an energy crisis across Europe, the continent has transformed how it generates and stores power. Russian natural gas, long Europe’s energy lifeline, has been replaced with other sources, notably liquefied natural gas from the United States. Wind and solar power generation has leaped around 50 percent since 2021. New nuclear power plants are being planned across the continent.
But Europe’s energy security remains fragile. The region produces far less natural gas than it consumes and is still largely dependent on other countries, especially the United States, to help keep the lights on. Natural gas, which drives the price of electricity, is roughly four times as expensive as in the United States. High energy costs have strained households and forced factories to close, weakening Europe’s economy.
A dependence on Russia
The 2022 invasion of Ukraine revealed Europe’s dependence on energy from Russia, especially natural gas, which accounts for around 20 percent of Europe’s energy consumption.
“The energy appeared cheap, but it exposed us to blackmail,” Ursula von der Leyen, president of the European Commission, the European Union’s executive arm, told the World Economic Forum last month.
Prices soared in 2022 on worries that Russia would completely cut off gas flows into Europe as well as other factors. Countries banded together to share fuel and other energy sources, and build or modify infrastructure to transport it. These efforts are forecast to have reduced Europe’s reliance on Russian gas to 8 percent of supplies in 2025, from 35 percent in 2021, according to Anna Galtsova, an analyst at S&P Global Commodity Insights, a research firm.
Norway is now the largest supplier of gas, mainly through a web of pipelines. But Russia has become a large supplier of liquefied natural gas, second only to the United States in 2024.
And Europe has become better at directing the energy to where it is needed, creating “a tremendous amount of flexibility that Europe didn’t have on the eve of the war,” said Anatol Feygin, chief commercial officer at Cheniere Energy, a large American L.N.G. exporter.
Helping that pivot were programs that encouraged households and government buildings to lower thermostats to 19 degrees Celsius (66 degrees Fahrenheit). Factories across Europe also curbed production to avoid blistering energy bills. Other initiatives, like having stores shut off lights early in the evening, have been rolled out.
Renewable energy solutions
Europe built more renewable energy projects to help bridge the gap. Before Russia’s invasion, around a third of Europe’s power generation came from renewable energy, propelled by a buildup of wind and solar power. In 2024, wind and solar farms generated more electrical power than fossil fuels for the first time, according to S&P Global Commodity Insights.
“That is a big change, and that speaks to the additional policy push to get alternative sources of energy into the system,” said Tim Gould, chief energy economist at the International Energy Agency in Paris.
But shifting to renewable energy is costly. Although overall energy prices have declined from their 2022 peaks, both gas and electricity tariffs remain elevated. Renewable sources like wind and solar have made great progress, but much investment is still needed to fill in the gaps in periods of low wind and sun.
Large polluters like steel makers have said Europe is not doing enough to foster a shift to greener operations. “European policy, energy and market environments have not moved in a favorable direction,” ArcelorMittal, Europe’s largest steel company, said in November.
Global competition for gas
The largest alternative to gas piped in from Russia by far has been liquefied natural gas, but it is a relatively expensive option. With gas vital for industry, heating and power generation, the shift away from Russian supplies has been difficult.
Europe is at the mercy of global markets, bidding against the likes of China and South Korea for liquefied natural gas. Prices have recently soared to the highest level in a year, hurting businesses and adding to a cost-of-living crisis in Europe.
The largest source of liquefied natural gas has been the United States, mostly terminals from the Gulf Coast, which provide nearly half of Europe’s supply. Europe has seen a boom in setting up terminals to receive L.N.G., especially in Germany, which had none before the energy crisis.
During a cold snap in January, several American tankers carrying liquefied natural gas to Asia changed course for Europe, where they could make a bigger profit, said Natasha Fielding, head of European gas pricing at Argus Media, a London research firm.
“Europe has made really remarkable strides,” said David L. Goldwyn, who was a State Department energy envoy during the Clinton and Obama administrations. “But when the weather turns cold and competition from Asia for L.N.G. increases, the situation looks more challenging.”
Gas prices remain high
Natural gas prices in Europe have fallen from the punishing highs of 2022, but in 2024, they were still double their five-year average before the war, according to the International Energy Agency.
Although imports of Russian gas through Europe’s pipelines have plummeted, Europe has expanded its purchases of liquefied natural gas from Russia, which arrives via port. There has not been enough time to develop new resources like L.N.G. to compensate for the loss of Russian gas.
The ebbs and flows of L.N.G. are largely determined by market forces. President Trump has pushed Europe to import more fuel from the United States, and Ms. von der Leyen has suggested that L.N.G. from the United States could replace Russian fuel.
Some level of additional gas exports to Europe from Russia could be included as a sweetener for President Vladimir V. Putin of Russia to agree to a settlement in Ukraine, analysts say. “That would be a serious negative for U.S. energy exporters,” Mr. Goldwyn said.
The cost of the energy crisis
Exorbitant gas costs contributed to soaring inflation and led factories that employed thousands in Europe to close or relocate to countries with cheaper energy.
Some of the biggest European names are trimming their operations. The German chemical giant BASF said it would close some production at its site in Ludwigshafen near the border with France, while making the largest foreign investment in its history in China, where energy is up to two-thirds cheaper than in Europe.
High natural gas prices have translated into higher costs for making ammonia, a crucial component in fertilizers. Yara International, a fertilizer giant based in Norway, is stopping ammonia production at its plant in Tertre, Belgium, potentially leading to more than 100 job losses. “High energy prices are a huge challenge for European competitiveness,” a spokeswoman said.
The energy crisis has also led to a painful cost-of-living crisis for families across Europe. Energy poverty has jumped in Europe, with nearly 10 percent of the population reporting that it is unable to keep its homes warm, and larger numbers of households falling behind on paying their energy bills.
“We’ve created a state of energy precariousness,” said Niki Vouzas, spokeswoman for the National Federation of Rural Families in France. “People are heating their house less, and filling up the gas tank less.”
An uphill battle
Recent months have brought renewed signs of market unease. The colder weather has caused Europe to draw down the levels of storage it builds up for the winter at a faster rate than the previous year, leading to worries that rebuilding these stocks over the summer may be expensive.
“The challenge will be this summer to replenish the reserves ahead of the following winter,” Ms. Fielding of Argus said.
Despite the premium prices of recent years, Europe’s overall gas production has declined. Higher taxes have deterred investment in the British North Sea while the Netherlands is shutting the once prolific Groningen field after production triggered earthquakes. Domestic output in the European Union and Britain amounted to less than 20 percent of consumption in 2024, S&P Global Commodity Insights estimates.
Austria’s OMV is one of the rare companies aiming to increase gas production in Europe. The only way to make Europe’s energy costs competitive with other regions like the United States “is to increase supplies of gas” said Alfred Stern, OMV’s chief executive.
“We are past peak crisis,” said Michael Stoppard, global gas strategy lead at S&P Global Commodity Insights. “But we are not out of the woods.”
Business
China’s Exports and Imports Set Records in April Amid High Energy Costs
China’s exports and imports each set monthly records in April, further cementing the country as the world’s leading trading nation as Beijing prepares to welcome President Trump for a summit next week with Xi Jinping, China’s leader.
China also ran a trade surplus — the excess of exports over imports — of $84.8 billion last month, according to data released on Saturday by the General Administration of Customs. However, that surplus did not set a record. The war in Iran and closure of the Strait of Hormuz pushed up the cost of imported oil and natural gas, causing China’s overall imports to increase slightly faster than exports.
The surplus in April keeps China on track for a third year of roughly trillion-dollar trade surpluses. China posted a $1.19 trillion trade surplus last year, easily breaking the world record of $992 billion that it had set the year before.
Mr. Trump is expected to press Mr. Xi to buy more American goods during their scheduled summit, part of his long-running effort to narrow China’s longtime trade surplus with the United States. But two recent court decisions overturning Mr. Trump’s tariffs on imports have eroded some of his leverage.
China’s exports to the United States jumped 11.3 percent last month compared to its shipments in April of last year, when President Trump’s “Liberation Day” tariffs produced a slump in imports from China.
The country’s imports from the United States rose only 9 percent in April this year. As a result, its trade surplus with the United States widened by 13 percent.
China has long used state-run purchasing collectives in big categories like farm goods and commercial aircraft to manage its trade with the United States, ensuring it sells three to five times as much as it buys. Mr. Trump and his advisers have criticized that imbalance.
Semiconductor exports doubled last month compared with April of last year. Chinese manufacturers cashed in on the artificial intelligence data center boom even though they cannot yet produce some of the fastest kinds of chips.
Overall exports of electronics and machinery were up 20 percent in April from a year earlier.
China acts in many ways as a shock absorber in global oil markets. Beijing buys more oil for its vast reserves when the price is low, then cuts back purchases when prices are high, as they were last month.
With oil prices spiking upward this spring, the tonnage of China’s oil imports dropped last month to its lowest level since July 2022, when Shanghai’s two-month Covid lockdown reduced demand. The lockdown hurt many of China’s oil-dependent industries.
Because prices rose faster last month than the tonnage declined, China’s overall bill for crude oil imports rose 13 percent from a year earlier. Rising oil prices helped drive China’s overall imports up 25.3 percent in April from a year ago, to a record $274.6 billion. Its exports surged 14.1 percent last month from a year earlier, to a record $359.4 billion.
China has been particularly successful this year in exporting electric cars as well as renewable energy products like wind turbines and solar panels. Exports of electric vehicles were up 52.8 percent last month from a year earlier.
China has been running large, and widening, trade surpluses over the past several years with most of the rest of the world. It has trade deficits with only a handful of countries, including those like Brazil and Australia which have very large commodity exports.
The European Union and many developing countries now find themselves with rapidly growing trade deficits with China. Practically all of them have run their own trade surpluses with the United States to fund their deficits with China, sometimes repackaging goods from China and shipping them on to the United States to do so.
China’s huge trade surpluses are not necessarily a sign of economic strength. They partly reflect very weak spending by Chinese households on imports and domestic goods alike after five years of sliding housing prices wiped out much of the savings of the middle class. This has prompted many families to scrimp on purchases like new cars, leaving Chinese automakers with more cars to export.
“The Chinese economy still demonstrates resilience in trade and industrial supply chains,” said Zhu Tian, an economics professor at the China Europe International Business School in Shanghai, after the release of the trade data.
But weak domestic spending and a leveling off in the trade surplus, he said, “suggest that economic growth will continue to face significant challenges for the rest of the year.”
Business
Disney’s ABC challenges FCC, escalating fight over free speech
Walt Disney Co.’s ABC is forcefully resisting Federal Communications Commission efforts to soften the network’s programming, accusing the federal agency of an overreach that violates 1st Amendment freedoms.
Last week, the FCC took the unusual step of calling in the licenses of eight Disney-owned television stations for early review. The move — widely interpreted as an effort to chill the network’s speech — came a day after President Trump demanded that ABC fire late-night host Jimmy Kimmel over a joke about First Lady Melania Trump.
The FCC separately has taken aim at ABC’s daytime discussion show, “The View,” which delves deeply into politics.
The FCC has questioned whether the show, which prominently features Trump critics Whoopi Goldberg and Joy Behar, could continue toclaim an exemption to rules that require broadcasters to provide equal time for opponents of political candidates.
In its response this week to the FCC, Disney’s Houston television station raised the stakes in “The View” dispute, calling the commission’s actions “unprecedented” and “beyond the Commission’s authority.” The ABC station’s petition for a declaratory ruling said “The View,” has long qualified as a “bona fide” news interview program with freedom to conduct interviews of legally qualified political candidates.
“The Commission’s actions threaten to upend decades of settled law and practice and chill critical protected speech, both with respect to The View and more broadly,” the Houston station KTRK-TV said in the filing.
The network’s firm stance sets up a clash with the Trump administration, including the president’s hand-picked FCC Chairman Brendan Carr, who has made no secret of his disdain for Kimmel and other ABC programming. Earlier this year, Carr announced that decades-old exemptions from the so-called “equal time rule,” for some programs, including “The View,” were no longer valid.
In a statement, the FCC said it would “review Disney’s assertion that ‘The View’ is a ‘bona fide news program’ and thus exempt from the political equal time rules,” according to a spokesperson.
“Decades ago, Congress passed a law that generally prohibits broadcast television programs from putting a thumb on the scale in favor of one political candidate over another,” the spokesperson said. “The equal time law encourages more speech and empowers voters to decide the outcome of elections.”
ABC’s strenuous arguments mark a turning point for the Disney-owned outlet.
In December 2024, a month after Trump was elected to a second term, the network quickly settled a lawsuit over statements made by news anchor George Stephanopoulos that Trump found offensive. ABC agreed to pay Trump $15 million to end his legal fight — sparking an outcry among free speech advocates, who accused the network of caving on a case it may have won.
But, over the past year, the network has weathered several storms, including a threat by Carr in September to punish ABC if it didn’t muzzle Kimmel for comments he made in the wake of conservative activist Charlie Kirk’s death. ABC briefly benched Kimmel to allow tensions to cool but, during the week his show was off the air, protesters loudly bashed Disney, demanding the legendary company stand up for free speech.
Thousands of consumers canceled their Disney+ and Hulu subscriptions in protest.
Protesters swarmed Hollywood Boulevard, protesting ABC’s move to bench Jimmy Kimmel in September over comments he made about the shooting of right-wing influencer Charlie Kirk.
(Genaro Molina/Los Angeles Times)
Some conservatives, including Sen. Ted Cruz (R-Texas) and commentator Ben Shapiro also criticized Carr’s handling of 1st Amendment issues.
“The days of the FCC as a paper tiger are numbered,” the FCC’s lone Democrat, Anna M. Gomez, said Friday in a statement. “What the public will remember is who complied in advance and who fought back. I’m glad Disney is choosing courage over capitulation.”
The high-profile dispute presents an early challenge for Disney Chief Executive Josh D’Amaro, who succeeded longtime chief Bob Iger in March.
ABC has asked for the full commission — a three member panel of Carr, Gomez and Commissioner Olivia Trusty, a Republican — to rule on the equal time exemption for “The View.” ABC said that, in 2002, it received a ruling from the FCC that granted the exemption, and the show’s format has not changed. “The View” is produced by ABC News.
“Some may dislike certain — or even most — of the viewpoints expressed on The View or similar shows,” the station said in its filing. “Such dislike, however, cannot justify using regulatory processes to restrict those views.”
ABC described a logistical nightmare of providing equal time for political opponents by pointing to California’s crowded primary field of gubernatorial candidates. “Affording equal time would mean accommodating over 60 legally qualified candidates, regardless of their perceived newsworthiness,” the station wrote.
The network said it makes show bookings based on newsworthiness, not partisan politics. It also noted it has invited politicians from both sides of the aisle to appear on “The View,” but some, including Vice President J.D. Vance, Health Secretary Robert F. Kennedy, Jr., Secretary of State Marco Rubio and entrepreneur Elon Musk, have declined the invitation.
The station also noted that, while the FCC has questioned the exemption for “The View,” the agency hasn’t shown interest in regulating programs on other networks, “including the many voices — conservative and liberal — on broadcast radio.” The FCC also oversees radio station licenses.
“The danger is that the government will simply decide which perspectives to regulate and which to leave undisturbed,” ABC said.
On April 28, Carr called for a review of Disney’s broadcast licenses, including for the Houston station and KABC-TV in Los Angeles, two years before any of them were set to expire. The FCC said the review was part of the agency’s year-old inquiry into Disney’s diversity, equity and inclusion policies and whether they violated federal anti-discrimination rules.
In its Thursday petition, ABC said it had fully complied with the FCC’s request for documents related to its diversity and hiring.
The company has produced more than 11,000 pages of documents to comply with the request, Disney said.
The same week that Disney sent documents to the FCC, Kimmel made a joke on his show about Melania Trump, comparing her glow to that of “an expectant widow.” On April 25, a gunman tried to breach security at the Washington Hilton, where the first couple were on stage for the White House Correspondents’ Assn. Dinner. Shots were fired outside the ballroom.
Three days later, the FCC announced it was requiring early license renewal applications for the Disney-owned stations.
Business
U.S. Targets Iran’s Missile and Drone Program With Sanctions
The United States on Friday announced a flurry of new sanctions intended to increase pressure on Iran’s economy, targeting people and companies in China and Hong Kong that have been helping the Iranian military gain access to supplies and war equipment.
The sanctions came ahead of a major summit between President Trump and China’s leader, Xi Jinping, in Beijing next week. China’s support for Iran has become a flashpoint with the Trump administration, which has been trying to compel independent Chinese refineries to stop purchasing Iranian oil.
China is Iran’s biggest buyer of oil, and the Trump administration has said that it is sponsoring terrorism by propping up the Iranian economy.
The new sanctions are aimed at Iran’s military industrial supply chain, and are intended to make it harder for Iran to secure access to the material it needs to build drones and missiles. In addition to China, the sanctions also target people and companies based in Belarus and the United Arab Emirates.
“Under President Trump’s decisive leadership, we will continue to act to keep America safe and target foreign individuals and companies providing Iran’s military with weapons for use against U.S. forces,” Treasury Secretary Scott Bessent said in a statement.
The Trump administration has been looking for ways to squeeze Iran’s economy and pressure the Iranian government to reopen the Strait of Hormuz, a conduit for the flow of global oil. Oil tankers have had sporadic access to the critical waterway since the war started earlier this year, and the United States and Iran have been fighting over who should control it.
U.S. warships that have been trying to transit the strait have been attacked by Iranian forces. The United States on Friday fired on and disabled two Iranian-flagged oil tankers as they tried to reach an Iranian port.
The Treasury Department has also imposed sanctions on the Chinese “teapot” refineries this month. The independent refineries are major purchasers of Iranian oil. But China invoked a domestic policy ordering its companies to disregard the sanctions.
Mr. Bessent said earlier this week that he expected Mr. Trump to urge Mr. Xi to use the country’s leverage over Iran to pressure it to allow oil cargo to travel.
“Let’s see if China — let’s see them step up with some diplomacy and get the Iranians to open the strait,” Mr. Bessent told Fox News on Monday.
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