Russia Invades Ukraine and Europe Buys More Gas. Here’s Why
Russian gas imports became cheaper than spot prices in Europe.
In the hours after the invasion of Ukraine, there were calls for Europe to punish Russia by ending energy purchases. But the immediate response of European energy companies was to buy more natural gas, much of it transported through Ukraine’s pipeline network.
Europe’s first war of the 21st century has highlighted its dependence on Russian energy supplies. A third of gas demand is met through pipelines from Siberian gas fields, giving state-run Gazprom billions in revenue every year. Cutting off those supplies would cause gas prices to skyrocket and threaten power cuts, an unpalatable prospect for governments that are already grappling with the contribution of higher energy prices to surging inflation. Oil and gas were exempted from the package of sanctions announced by the U.S. and European Union on Thursday.
Energy independence with renewables anyone?
Sources: https://www.bloomberg.com/news/articles/2022-02-24/european-energy-firms-rush-to-buy-russian-gas-even-after-attack & https://www.bloomberg.com/news/articles/2022-02-25/russian-attacks-continue-ahead-of-nato-summit-ukraine-update