Bloomberg reports Europe grappling with fresh gas crisis
US sanctions targeting Gazprombank could sever Europe's last remaining avenues for Russian pipeline gas, according to a warning from Bloomberg. Read Full Article at RT.com.
TroibNews 
US sanctions targeting Gazprombank pose a risk of severing the last remaining avenues for Russian pipeline gas, the outlet has cautioned.
Europe is nearing a potential new energy crisis, as diminishing gas reserves and possible supply reductions from Russia threaten to worsen an already precarious situation, as reported by Bloomberg. The analysis follows the announcement of US sanctions against Gazprombank, Russia’s main financial institution for energy transactions, in an article published on Saturday.
Bloomberg noted that the European market is still in recovery from the significant energy shocks experienced two years ago, with the conflict in Ukraine resulting in a 45% increase in gas prices this year. Although current prices remain lower than those seen in 2022, they are reportedly sufficient to intensify the cost-of-living crisis for households and heighten pressure on manufacturers.
Dr. Markus Krebber, CEO of RWE AG, expressed concerns regarding the situation. “We still have problems with gas supply. If we really want to be independent of Russian gas, we need to have more import capacity,” Krebber stated. He warned that this winter could present considerable challenges as gas storage facilities continue to deplete rapidly.
Gas storage has been vital during the colder months; however, inventories are falling quickly due to heightened demand for heating amid low temperatures and a lack of wind for power generation. Despite efforts to reduce reliance on Russian energy, the EU remains one of the largest importers of Russian fossil fuels worldwide.
This week, the US imposed sanctions on Gazprombank, the primary bank for energy transactions in Russia and the country’s last significant financial institution still interconnected with the SWIFT international messaging system.
Analysts from Energy Aspects informed Bloomberg that losing one of the last remaining channels for Russian pipeline gas would substantially elevate market pressures and push global prices higher. Hungary, which has resisted stringent sanctions on Russia due to the Ukraine conflict, remarked that by sanctioning Gazprombank, Washington is intentionally placing the energy security of various European nations at risk.
According to Bloomberg, summer gas prices, which are usually low enough to allow for storage replenishment, are currently higher than anticipated for the coming winter. This suggests that energy costs are likely to stay elevated over an extended period, and as storage levels decline this winter, replenishing reserves will become increasingly difficult, the outlet emphasized.
Mark B Thomas for TROIB News
Europe is nearing a potential new energy crisis, as diminishing gas reserves and possible supply reductions from Russia threaten to worsen an already precarious situation, as reported by Bloomberg. The analysis follows the announcement of US sanctions against Gazprombank, Russia’s main financial institution for energy transactions, in an article published on Saturday.
Bloomberg noted that the European market is still in recovery from the significant energy shocks experienced two years ago, with the conflict in Ukraine resulting in a 45% increase in gas prices this year. Although current prices remain lower than those seen in 2022, they are reportedly sufficient to intensify the cost-of-living crisis for households and heighten pressure on manufacturers.
Dr. Markus Krebber, CEO of RWE AG, expressed concerns regarding the situation. “We still have problems with gas supply. If we really want to be independent of Russian gas, we need to have more import capacity,” Krebber stated. He warned that this winter could present considerable challenges as gas storage facilities continue to deplete rapidly.
Gas storage has been vital during the colder months; however, inventories are falling quickly due to heightened demand for heating amid low temperatures and a lack of wind for power generation. Despite efforts to reduce reliance on Russian energy, the EU remains one of the largest importers of Russian fossil fuels worldwide.
This week, the US imposed sanctions on Gazprombank, the primary bank for energy transactions in Russia and the country’s last significant financial institution still interconnected with the SWIFT international messaging system.
Analysts from Energy Aspects informed Bloomberg that losing one of the last remaining channels for Russian pipeline gas would substantially elevate market pressures and push global prices higher. Hungary, which has resisted stringent sanctions on Russia due to the Ukraine conflict, remarked that by sanctioning Gazprombank, Washington is intentionally placing the energy security of various European nations at risk.
According to Bloomberg, summer gas prices, which are usually low enough to allow for storage replenishment, are currently higher than anticipated for the coming winter. This suggests that energy costs are likely to stay elevated over an extended period, and as storage levels decline this winter, replenishing reserves will become increasingly difficult, the outlet emphasized.
Mark B Thomas for TROIB News
