The European Commission warned of rising gas prices due to geopolitics

European Commissioner for Energy Simson announced the impact of geopolitics on the cost of gas Geopolitics will aggravate the already difficult situation with gas prices, they say. Energy Ministers of the EU countries note the uncertainty in the markets due to the situation around Ukraine, as well as the reduction in gas supplies from Russia

In the near future, Europe will face “unusually high energy prices”, and this trend will be exacerbated by the geopolitical situation, European Commissioner for Energy Kadri Simson said during an informal meeting of energy ministers of the countries — members of the EU.

She recalled the record growth in gas prices over the past few months and added that the energy transition to cleaner energy sources will reduce prices.

“We also focused on the security of [gas] supplies,” Simson told.— The levels of gas in storage in the EU are significantly lower than usual at this time of the year. Many ministers noted that the situation beyond the eastern border of the EU creates uncertainty in the markets and that gas flows from Russia have significantly decreased in recent months.

At the same time, the European Commissioner stressed that the European gas infrastructure reliable and well diversified, and emergency protocols contain clear procedures.

“But we need to remain extremely vigilant, increase our risk appetite and strengthen solidarity among [EU] member states. The Commission is conducting a deeper analysis of various scenarios to ensure that existing national plans are fit for purpose, in particular taking into account recent developments and levels [of gas] in storage,” — added Simson.

In mid-January, natural gas stock prices rose again in Europe. having exceeded the mark of $1.1 thousand per 1 thousand cubic meters. Before that, at the end of December, fuel prices jumped to a historic high (December 21, $2,190.4 per 1,000 cubic meters), but after that they dropped to $1,000.

In 2022, the price of gas in Europe will remain at fairly high levels, Deputy Prime Minister Alexander Novak predicted at the end of last year. “The balance of supply and demand today is such that the price is quite high. I think that next year it will be at high levels, — he explained without naming specific figures.

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