Against the background of the Russian invasion of Ukraine, gas prices in Europe are soaring by more than 50%, due to Russia’s significant impact on gas markets in Europe, and in the face of threats of sanctions from it by NATO members.
The price of Dutch natural gas (TTF) is currently jumping by 52% to a price of about 88.89 euros per megawatt hour. This is because Europe relies on Russia, for about 40% of its natural gas, with the bulk coming through pipelines including Yamal, which crosses Belarus and Poland to Germany, Nord Stream 1, which passes directly to Germany, and pipelines through Ukraine.
As a result, news of Russian supplies is causing great volatility in gas prices on the continent. Although a number of countries such as the UK are almost independent of Russian gas, lower general supply from Russia to Europe also means harm to them due to the growing demand from the largest supplier on the continent, Norway.
European Commission President Ursula von der Lane said the EU could deal with certain disruptions to gas imports from Russia. This, while a mild winter also meant that gas supplies in Europe remained more stable than many expected towards the end of the winter heating season. However, gas prices are expected to remain high, with some European countries pouring billions into measures to protect households from the impact of high energy costs.
Despite tensions in Russia are trying to broadcast business as usual when the Russian energy giant Gazprom announced today that gas exports through Ukraine will continue to be carried out in accordance with consumer requests. Analysts also predict that Russia will continue to supply gas to Europe, while pointing to a continuous supply from Russia to Europe during a cold crisis in 2014/15.
Yesterday, German Chancellor Olaf Schultz announced the halting of approval of the establishment of the joint pipeline with Russia, after it officially recognized both of their regions in eastern Ukraine as independent. A statement was later joined by U.S. President Joe Biden, who imposed a series of sanctions on the country.
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