EU Should Urge US to Change Its Course Aimed at Containing Russia, Chinese Media Says

The European economy may be significantly affected by the Ukraine conflict, so it's time for Brussels to heed Moscow's "legitimate" security concerns and urge Washington to change its course aimed at containing Russia to avoid any further escalation of tensions, the state-run Chinese newspaper Global Times has reported.

The news outlet argues that the situation in Ukraine will have "far-reaching political and economic consequences in Europe", riding roughshod over the European economy, which has been showing signs of recovery from the COVID-19 pandemic since the beginning of the year.

According to the Global Times, given that some EU countries have long maintained close economic and trade ties with Moscow, "it is conceivable that the US and its allies' severe sanctions imposed on Russia will produce shocks to regional supply chains, including energy supplies".

As for the far-reaching and "unexpected consequences" of the Ukraine conflict, the news outlet goes on to say that they will most likely include "capital outflow from the European markets to the US, which is expected to partially alleviate the pressure facing the Federal Reserve, which is mulling raising interest rates to curb surging inflation in the US".

In terms of Washington's anti-Russian sanctions, these measures may result in a situation where many European countries will have to rely on expensive liquefied natural gas (LNG) provided by the US, according to the Global Times.

With oil and gas prices continuing to increase, inflation in European countries "will be exacerbated", the newspaper claims.

As another example of the consequences, the Global Times pointed to the Nord Stream 2 gas pipeline, noting that the Ukraine conflict means that "it is basically impossible" to push forward with the project because Germany said it will put certification of the pipeline on hold. And without the Nord Stream 2, the news outlet warns, "the energy needs of Germany and other EU countries will be hurt".

The Global Times concludes by suggesting that it is America that "could be the only party that stands to benefit from the situation".

"Not only will it no longer have to worry about the operation of the Nord Stream 2, which would squeeze the market space of US LNG in European market, but it will also be able to gain an even bigger market share for its LNG that is priced at 20 to 30 percent higher compared with Russia's natural gas", the newspaper concludes.

The article follows Russia's launch of a military operation in Ukraine on Thursday, with President Vladimir Putin stressing that the goal is to protect the people of the Donbass region "who have been subjected to abuse, genocide by the Kiev regime for eight years".

This came after Russia recognised the Donetsk and Lugansk People's Republics as independent nations, ratifying friendship and cooperation treaties with them, and promising to protect the people of Donbass against any threats.