Enel CEO: EU itself responsible for dependence on Russia
The head of the world's second-largest utility says the region should have addressed the gas supply problem long ago
Ibrahim Al-TarikMay 8, 2025
The head of the world's second-largest energy supplier has sharply criticized the EU's energy policy, saying the EU should have "aggressively" tackled its dependence on gas imports long ago.
Francesco Starace, head of Italian energy company Enel, urged member states to swiftly switch to other energy sources in a bid to sever ties with Russia after Vladimir Putin's move to bill gas in rubles fueled tensions over the war in Ukraine .
Russian President Vladimir Putin signed a decree last week according to which countries classified as "unfriendly" must settle their gas supplies in rubles via an account in the Russian currency at Gazprombank from April onwards, otherwise supplies are threatened.
Starace, who has been at the helm of state-controlled company Enel since 2014, said European countries should have considered their energy dependency on third countries years ago.
"Now it's Russia's turn, but we shouldn't forget what happened in Libya 10 years ago," said the 67-year-old CEO. "Where the gas comes to Europe from is a problem".
He said the EU should have managed its dependence on fossil fuels, particularly gas, better and more aggressively."
Starace urged European countries to rid themselves of "physical links" with other countries by building regasification plants and leasing floating offshore LNG processing plants, allowing them to diversify their supplies and move away from fixed pipelines.
He also urged them to accelerate the transition to other energy sources, including renewables, but acknowledged that this could not happen overnight.
"Burning gas to generate electricity is utterly nonsensical...from both an economic and an environmental perspective, gas is precious and should only be used where it is irreplaceable," Starace said.
"Obviously these things take time, so you have to do them in order of importance," he added. "And of course you have to survive first and then try to reduce dependency.
Enel, which has a market value of 62 billion euros and is one of the world's largest producers of renewable energy, plans to phase out fossil fuels for electricity generation by 2040.
Last week the company signed an agreement with the European Commission to increase solar cell production in Sicily under the EU Innovation Fund.
The EU hopes to expand its renewable energy capacity to 600 terawatt hours by 2030. This timetable has drawn criticism from businesses and politicians across Europe for its potential negative impact on jobs and increasing the cost of the transition.
But for Starace, "the cost is there, if you buy gas, burn it, and then it's over..." If you put your money into something that stays in your hands and continues to produce energy, that's an investment."
Gas, mostly Russian, currently accounts for 40 percent of Italy's power generation mix.
Starace stressed that he "didn't want to demonize Russia" and that the problem was the same for "any other country".
Enel has a €300 million exposure in Russia, where the company employs 1,500 people in its three large combined-cycle thermoelectric power plants, which use gas to generate electricity for the domestic grid and heat three major cities.
The Enel boss was among a group of company leaders who unsettled the government in Rome in January by attending a video conference call with Putin to discuss expanding business ties between the two countries.
Starace said he didn't expect "this kind of escalation" at the time and that Enel is now considering leaving the country. "If we can sell [to a Russian party] then we will get out," he said.
"Otherwise, I think it will be very difficult for us to continue to ensure the functioning of these units in an appropriate way.
