Natural gas prices soared 24% in Europe, after Russia cut off supplies to Poland and Bulgaria, sending a clear message to the rest of the continent regarding its willingness to live up to its threats of a massive halt on flows, Bloomberg reported on April 27th.
On the heels of Russia’s recent decision, the benchmark Dutch futures hiked to €127.5 per megawatt/hour, its highest level since the beginning of April.
The EU has been in a dispute with Russia for weeks after Moscow demanded payment in rubles for gas from what Putin called “unfriendly” countries.
EU members refused such a demand, claiming it was a breach of sanctions imposed on Russia over its invasion of Ukraine.
Russia supplies most of Europe’s needs of gas. According to the International Energy Agency (IEA), the EU imported 155 bln cubic meters of natural gas from Russia, accounting for around 45% of the bloc’s gas imports and close to 40% of its total consumption.
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