Sanchez: Spain and Southern Europe have a chance to respond to energy dependence on Russia

Spanish Prime Minister Pedro Sanchez has said his country – and southern Europe at large – could respond to Russia’s lack of gas supplies as the region seeks to strengthen sanctions against Moscow.

“Spain and, I would say, southern Europe will have a chance to give an answer to this energy dependence on Russia,” Sanchez told CNBC at the World Economic Forum in Davos late Monday.

Sanchez stressed that Spain accounts for 37% of the European Union’s total regasification capacity – where liquefied natural gas (LNG) is converted back into the final gas product. He also said that the Iberian Peninsula, which includes Spain and Portugal, hosts about half of the EU LNG storage facilities.

“This war has also taught us a very important lesson, which is that renewable energy sources, hydrogen, energy efficiency are not only a great ally for countries and economies to tackle climate change efforts, but “In this very complex and very uncertain geopolitical scenario, they will provide us with the means to increase our resilience and our autonomy.”

The issue of energy security – and the spike in energy prices – has been at the heart of the political debate in Spain, with Madrid speaking strongly about the need for European action to reduce consumer prices.

Together with neighboring Portugal, Spain has introduced a temporary ceiling on gas and coal prices, a move that sets it apart from most of the rest of the EU.

Sanchez said the EU energy market was not suitable to respond to the current crisis.

“This is just the beginning of a big problem that we have to deal with at European level,” he said.