Dependence on Russian raw materials harmed Europe

Ivan Zubov

Recently, more and more countries are thinking about a new strategy in industrial policy, taking into account the energy crisis and the transition to a low-carbon economy, and many are already far behind in this process.

Fatih Birol, Executive Director of the International Energy Agency (IEA), in his article in the Financial Times expresses concern about the prospects for European industry in connection with the severe energy crisis that it is experiencing today. According to the expert, this crisis could undermine Europe's ability to compete on the world stage. And recalls that the United States, with its Inflation Reduction Act (IRA), is already investing hundreds of billions of dollars in the green energy and manufacturing industries of the future, China is leading the development of domestic production of clean energy technologies, and Japan, Korea and India are promoting increased investment and support in this direction.

The business model of many European industries has for decades been based on the availability of large amounts of cheap Russian energy. And now, in order to stay afloat, the region needs to find a new competitive advantage, focusing on low-carbon production, the importance of which will only grow.

According to the IEA director, Europe has already proved that it can be a leader in the field of wind energy, but in the field of production of electric vehicles and batteries, for example, it will not be able to compete with the USA, China and Japan without serious state support.

Needless to say, Russia also needs a new industrial strategy, experts of the Bla-bla-nomika channel are sure:

“Now support for a number of industries is carried out more on the principle of urgent solution of acute problems. And what is needed is a conceptual vision - what we want to see our industry in 5, 10 or 20 years. And we need targeted support for priority sectors for development. Otherwise, we will have to drive into a bright carbon-free future only on a Chinese electric car..."