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HomeNationalRussia-Ukraine War: Gas prices in Europe jumped by more than 6.4 percent,...

Russia-Ukraine War: Gas prices in Europe jumped by more than 6.4 percent, supply crisis arose

The countries of Europe are troubled by the fear of gas shortage.

Image Credit source: AFP (File Photo)

For the European Union, the natural gas supplied from Russia is like a lifeline. The European Union gets 40 percent of its gas needs from Russia alone.

The fiercest war for 78 days only Ukraine (Ukraine) is not being fought on the ground itself. The scope of this war also includes those tactics, by which any country can be brought to its knees in a few days. Economic sanctions are one of these weapons. Russia (Russia) Or Ukraine or America and its allies all used this weapon, but now Ukraine and Russia have started suppressing each other’s vein, whose effect will be deep. NATO in Finland and Sweden (NATORussia has taken a big action amidst the increasing steps of Russia imposed sanctions on the owners of the Polish section of the Yamal pipeline. This pipeline supplies Russian gas to Europe.

Simultaneously, the Putin administration also banned the former German unit of the Russian gas company Gazprom. Russia has imposed these strict sanctions on companies of those countries, which are actively helping Ukraine in the war. Most of these are countries of the European Union. The latest sanctions are the result of Putin’s May 3 decision, which said Russian companies would not make any deals with people on the sanctions list. Meanwhile, in view of the Ukraine war, the Finnish government company Fortum has taken a big decision. Finland’s state-owned oil company Fortum has decided to wind up its business with Russia.

Gas supply crisis in Europe countries

In early March, Fortum announced that it was suspending all projects in Russia until further notice following the invasion of Ukraine. Not only Russia, now Ukraine is also using this weapon. Ukraine has stopped Russia’s gas supply passing through it. Russia supplies more than 32 million cubic meters of gas daily to European countries via Ukraine, but after Ukraine’s decision, there has been a gas supply crisis in Europe’s countries.

The big decision of Ukraine’s Gas Transmission System Operator has shaken the whole of Europe. Natural gas prices in Europe are set to skyrocket within 24 hours of stopping gas supplies. The countries of Europe are troubled by the fear of gas shortage. Ukraine blocked gas from Sokhranivka gas metering station and Novopskov compressor station to Europe. The stoppage of gas supply from the Novopskov compressor station alone has stopped a third of the total gas supplied to Europe. The Novopskov compressor station was supplying 32.6 million cubic meters of gas daily from Russia to Europe.

Gas prices jump by more than 6.4 percent in Europe

The Sokhranivka gas metering station and Novopskov compressor station are located in eastern Ukraine, which is currently controlled by Russia. Russia is being accused of stopping the supply of gas from Ukraine. However, Russia has denied these allegations. The direct effect of stopping the supply of natural gas from Ukraine is visible on the prices of natural gas in Europe. According to the American company Refinitiv, which provides financial data, gas prices in Europe have jumped by more than 6.4 percent. Understand from this the importance of oil and gas supplied by Russia to the countries of Europe.

The natural gas supplied from Russia to the European Union is like a lifeline. The European Union gets 40 percent of its gas needs from Russia alone. If the supply of gas from Russia stops, then it will have a very bad effect on the economic activities of the European Union. With the supply of gas from the Novopskov compressor station stopped, it is very difficult to send gas to Europe through other routes. Russian energy giant Gazprom has said that it is technically impossible for it to supply gas from any other place.

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‘Winter will have a devastating effect on gas prices’

Economists around the world are warning about such a stop in the supply of oil and gas, because its very serious consequences will be seen not only on the countries of Europe, but on the whole world. Well-known natural gas trader Bill Perkins’s estimates are extremely intimidating. He says that such decisions will have a disastrous effect on gas prices in the coming winter. Overall, it is a compulsion for countries in the European Union to buy gas from Russia. Think of it like this, despite the strict sanctions of the European Union, many countries of Europe are buying oil and gas on the terms of Russia. Countries like Germany, Austria, Hungary and Slovakia are paying in rubles for oil and gas coming from Russia. Imagine that on one hand these countries are providing arms and other aid against Russia in Ukraine war and on the other hand they are filling Russia’s coffers by buying oil and gas. This is also the biggest compulsion of the countries of Europe.

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