Kremlin: Trump is a businessman, and he is trying to force world to buy American oil and gas at higher price

Kremlin: Trump is a businessman, and he is trying to force world to buy American oil and gas at higher price

In a significant shift in policy, the Trump Administration is advocating for the World Bank to reconsider its stance on oil and gas financing. The move comes amidst ongoing geopolitical tensions and a push for energy security, particularly for upstream gas developments .

The World Bank, which previously committed to ceasing funding for new fossil fuel ventures after 2019, is now being urged to reverse its policy. This change in stance is part of a broader strategy to prioritize energy security over climate change concerns. The U.S. Administration is not only targeting the World Bank but also other development banks to finance fossil fuel projects, including gas pipeline projects .

This policy shift coincides with a trend of North American banks and asset managers withdrawing from net-zero alliances following President Trump's election. The top U.S. banks and four of Canada’s largest banks are no longer part of the Net-Zero Banking Alliance (NZBA), a group committed to aligning their activities with net-zero greenhouse gas emissions by 2050 .

The Kremlin has responded to these developments, characterizing Trump's actions as a business strategy to force the world to buy American oil and gas at higher prices. The Russian government has been vocal in its criticism of the European Union's continued purchases of Russian oil and natural gas, accusing them of propping up the Russian war effort against Ukraine .

While the European Union has reduced its overall energy dependency on Russia, it continues to import some supplies, primarily due to the logistical and economic constraints of switching to alternative sources. Russia remains a significant exporter of liquefied natural gas (LNG) to the European Union, rivaling Qatar. The European Union is proposing to phase out these shipments by 2027, but the transition is expected to be gradual and complex .

The push for increased oil and gas financing by the Trump Administration has sparked debate among financial professionals and investors. While some argue that this strategy could bolster U.S. energy exports and enhance energy security, others caution about the environmental implications and the potential for increased geopolitical tensions.