Research – analysis: prof. Giannis Maniatis
With the assistance of PhD students: I. Voulgari, A. Manoli, M. Hatzigeorgiadis

The European Union last year reduced the outflow of money to Russia from oil and natural gas imports by 38% due to a drop in demand for Russian natural gas to 9% from 40% earlier. At the same time, carbon dioxide emissions fell by 2.5%, with a 41% increase in solar and wind installations, a 40% increase in heat pump sales and a 15% increase in electric vehicle sales.

Russia’s revenues from fossil fuels

A year after the Russian invasion of Ukraine, sanctions reduced total mineral revenues by 50% (from $1.2 billion a day to just $560 million a day). Half of the total revenue comes from the European Union, and China is the leading buyer. India has increased its purchases by 70% at very low prices by refining Russian oil, which it then sells to countries under sanctions.

Investment in research and development

The share of GDP invested in research and development (R&D) is a key indicator of the competitiveness and survival of countries and economies. With an OECD average of 2.5%, Israel (5.5%) and South Korea (4.8%) are at the top. Sweden (3.4%), Austria and Belgium (3.2%) are leading at the EU level. Greece shows a rate of 1.4%, well below the OECD average.

Waves of innovation revolutions

Historically, six waves of innovative revolutions can be distinguished, the time intervals of their appearance are constantly decreasing (from the initial 60 years today to only 25). The first wave with the advent of the first factory, the second with railways, steam and steel, the third with electricity and internal combustion engines, the fourth with electronics, petrochemicals and aviation, the fifth with the Internet and new media, the sixth (today) with the climate crisis, green energy, artificial intelligence, robots and drones.

The geopolitical role of EastMed

The important geopolitical role of the EastMed pipeline for the interests (and) of Italy was recently discussed in the Italian Parliament. For Italy, the Eastern Mediterranean represents a key region for energy diversification and stability, guaranteeing it access to one of the world’s largest reservoirs of natural gas, renewable energy and new sources of hydrogen. The European EastMed – Poseidon project is an opportunity for Italy to close new deals and benefit from its national recovery and resilience plan in
within REPowerEU.

Create a new interface

Israel’s (and Cyprus’) natural gas volumes are sufficient to support the creation of a new interconnection with the EastMed pipeline in addition to the export of liquefied natural gas (LNG) via Egypt. The Eastern Mediterranean, the Middle East and Northwest Africa are the main basins for low-carbon energy production. The direct connection of the fields in Israel and Cyprus will encourage new pricing to balance exposure in a flexible LNG market, which, however, guarantees volumes only at the cap price
global market.