Europe stands on the brink of a new energy crisis, as rapidly depleting gas reserves and possible supply disruptions from Russia threaten to worsen an already difficult situation.
Bloomberg analyzed the situation in the region following US sanctions against Gazprombank, Russia’s main bank for energy-related transactions.
According to Bloomberg, the European market continues to recover from the serious energy shocks it suffered two years ago. The conflict in Ukraine has caused gas prices to rise 45 percent this year.
Current prices, although below 2022 records, are reportedly high enough to deepen the cost of living crisis for households and increase pressure on producers.
Bloomberg emphasized the concerns of RWE AG Chief Executive Dr. He referred to Markus Krebber. “We still have problems with gas supply. If we want to be truly independent of Russian gas, we need to have more import capacity,” Krebber said.
Krebber warned that significant difficulties could be encountered this winter due to the rapid depletion of gas in gas storage facilities. Gas storage was crucial during the coldest months; However, stocks are rapidly decreasing due to increased heating demand at low temperatures and lack of wind for electricity generation.
The European Union remains one of the largest importers of Russian fossil fuels in the world, despite plans to eliminate its dependence on Russian energy.
This week, the United States imposed sanctions on Gazprombank, Russia’s main bank for energy-related transactions and the last major bank connected to the country’s SWIFT interbank messaging system.
Losing one of the last remaining routes for Russian pipeline gas would significantly increase market pressures and raise global prices, Energy Aspects analysts told Bloomberg.
Hungary, which opposes the harsh measures imposed on Russia due to the Ukraine conflict, stated that Washington deliberately endangered the energy supply security of many European countries by imposing sanctions on Gazprombank.
Bloomberg noted that summer gas prices, which are generally expected to be low enough to fill tanks, are already higher than those projected for the winter. This suggests energy costs will remain higher for a long time and it will become increasingly difficult to replenish reserves as storage levels decline this winter.
