Ukraine cuts gas, causing gas prices to climb in Europe
Gas prices in Europe rose rapidly after the news that the flow of natural gas to Europe via Ukraine had been cut off. The Russian-Ukrainian war affected the supply of physical fuel to Europe for the first time. Natural gas prices have skyrocketed in Europe after the transit flow of Russian gas through one of its key points in Ukraine stopped.
The operator of Ukraine’s gas network announced late yesterday that it would stop the purchase of fuel at the Sokhranivka gas metering station at 7 a.m. because they could not control the infrastructure in Russian-controlled areas.
PRICES SKYROCKET
Although the price volatility in the natural gas market has calmed down recently due to the warming of the weather, prices have risen after increasing concerns in the markets.
Dutch natural gas futures contracts, an indicator for European gas prices, rose 5.3 percent to $ 1,109 per 1,000 cubic meters after Ukraine’s announcement.
STATEMENT FROM GAZPROM
Sergey Kupriyanov, a representative of the Russian energy company Gazprom, explained that they were informed that Ukraine would stop buying Russian gas, but they could not understand why.
THE VULNERABILITY FOR EUROPE
Ukraine, despite the war, had remained one of the main routes for natural gas transported from Russia to Europe. The goal of the sanctions of Western states against Russia is to ban or gradually stop the use of Russian energy resources.
EXPERTS: HIGH PRICES WILL CONTINUE
Some analysts at US-based investment bank Stifel said in an information note on gas prices that gas prices might remain high for the rest of 2022 and 2023.
“European gas prices will continue to be priced with the current geopolitical risks in the near future,” the note said.
SOURCE: sozcu.com.tr/2022/ekonomi/ukrayna-gazi-kesti-avrupada-dogalgaz-fiyatlari-tirmanisa-gecti-7127551/
