Core Viewpoint - Russia is shifting its natural gas export focus from Europe to China due to sanctions and geopolitical tensions, which has led to significant economic impacts in Europe and a strategic realignment for Russia in the energy market [2][17]. Group 1: Impact of Sanctions on Europe - The onset of the Russia-Ukraine conflict in February 2022 led to economic sanctions from the US and EU, freezing assets and restricting trade, which prompted Russia to leverage its energy exports as a countermeasure [2]. - Natural gas prices in Europe skyrocketed from around 20 euros per megawatt-hour to over 300 euros, causing significant disruptions in industries such as fertilizer production and heating costs for households [2]. - Finland faced severe supply issues when Russia halted gas exports, leading to a projected economic growth reduction of one percentage point for the year [4]. Group 2: Russia's Strategic Shift - By 2024, Russia's natural gas exports to Europe are expected to drop by half, with a definitive pivot towards Asian markets, particularly China [7]. - The "Power of Siberia" pipeline, operational since December 2019, has been expanded to increase gas supply to China, with contracts signed to boost annual deliveries to 480 billion cubic meters by 2024 [9]. - Russia is diversifying its energy exports to mitigate the impact of European sanctions, with plans for new pipelines and increased cooperation with China [9][19]. Group 3: Economic Consequences in Europe - The EU's energy crisis has led to widespread protests and strikes in countries like Germany and Italy, as citizens demand government action against rising energy prices [7][15]. - The EU has implemented multiple rounds of sanctions against Russia, including a ban on liquefied natural gas imports starting in 2027, which is expected to increase costs for European countries reliant on alternative suppliers [7][13]. - Economic forecasts indicate that the European economy will struggle with growth rates below 1% due to high energy prices and industrial shutdowns [15]. Group 4: Future Outlook - Russia's long-term strategy involves solidifying its energy relationship with China, positioning itself as a key supplier in the Asian market while reducing dependency on European markets [17][19]. - The geopolitical landscape is shifting towards a multipolar energy order, with Russia, China, and India forming a tighter energy alliance, which could reshape global energy dynamics [19].