Business · Energy & Commodities · 2 hrs ago
Russian gas ban could raise prices and worsen Europe's supply risk
The European Union plans to ban Russian gas imports from January 1, including liquefied natural gas supplied under long-term contracts.
Russian investment manager Dmitry Skryabin says the ban could make Europe's gas shortage risk worse in the coming months.
Europe is entering the heating season, when demand for gas can rise.
Skryabin says weather will also influence prices, but losing Russian supplies could push them up if other conditions stay the same.
He expects Russian LNG to find buyers elsewhere, while Europe may struggle to replace the missing volumes.
The European Commission has also rejected a US proposal to resume Russian gas purchases during discussions about a truce in Ukraine.
A full ban on Russian gas, including liquefied natural gas under long-term contracts, is due to take effect on January 1.
Russian gas analyst Dmitry Skryabin said the ban could worsen Europe’s existing risk of a gas shortage in the coming months.
He said the loss of Russian supplies could push prices higher, all else being equal.
Skryabin said Russian liquefied natural gas could find buyers elsewhere, while Europe could struggle to replace the lost volumes.
- Who
- The European Union is introducing the restrictions. Analyst Dmitry Skryabin commented on their possible effects.
- What
- A full ban on Russian gas, including liquefied natural gas under long-term contracts, is due to take effect.
- When
- January 1; the year is not stated in the article.
- Where
- Europe.
- Why
- The article says the European Union is introducing restrictions on Russian gas; it does not state the reason for the ban.
This story does not have two clearly opposing sides.
The European Commission rejected a US proposal to resume purchases of Russian gas as part of discussions on a ceasefire in Ukraine.
Dmitry Skryabin warned that the planned ban could worsen Europe’s gas shortage risk and raise prices.
The full ban on Russian gas, including LNG under long-term contracts, is due to take effect.
- Ban scope
- Russian gas, including LNG under long-term contracts
- Effective date
- January 1; year not stated
- Possible effect
- Greater risk of gas shortages in Europe
- Possible price effect
- Higher prices, all else being equal
- Commentator
- Dmitry Skryabin, portfolio manager at Alfa Capital Management Company
3 sources
What people are saying
But all else being equal, the loss of Russian volumes from the new year will tighten the shortage and lead to price rises
Russian LNG will find demand in other places, while it will be difficult for Europe, which is imposing restrictions, to make up for the lost volumes from other sources