¹Faculty of Economic and Business, Universitas Sebelas Maret, Indonesia

²Financial Markets and Institutions Research Group, Universitas Sebelas Maret, Indonesia

²Center for Fintech and Banking, Universitas Sebelas Maret, Indonesia

Email: nugrohosaputro2022@gmail.com

The crisis of energy has been started because of the war between Russia and Ukraine and the imposition of economic sanctions by European countries. In fact, Russia supplies 40% of gas and 25% of crude oil to the majority of European countries. In retaliation for the sanctions, Russia required the purchase of its gas and oil in its ruble. However, this policy was rejected by European countries and resulted reduction of energy supply that the price of gas and oil to rose. European countries are trying to reduce Russia’s energy dependence by looking for environmentally friendly energy alternatives. As the first step, European countries increase the budget for the development of environmentally friendly energy. This paper use data from the European Commission (EC), Greenmatch, Bloomberg, and the World Bank. The author finds that European countries have increased the budget for the development and the use of environmentally friendly energy to remove the dependence on gas and oil energy from Russia. European countries believe that environmentally friendly energy can become the major energy resources in the future.