Gas price in Europe breaks records, but the Nord Stream 2 operator is forced to lay off staff

Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, gave a commentary to the Business FM radio station on the situation with gas prices in Europe.

“Indeed, the situation on the European stock exchanges is now close to panic, and this is due to a whole set of expectations, and the most negative expectations. We know that just a few days ago, Boris Johnson officially stated that it would be advisable for Europe to abandon Russian oil and gas, and gradually such statements are beginning to be repeated by other EU politicians, and the same words are heard in the United States. We see how the situation in Ukraine is deteriorating, it still has no signs of stabilization, and I think that high prices are the reaction of traders who are seriously afraid of a political decision by European countries to refuse to purchase Russian gas, even if on a temporary basis. I am sure that in the current situation, Gazprom will fulfill its obligations completely, but if political decisions are made by the leadership of European countries, then there is an element of force majeure. Of course, if such a situation occurs, it will be a very heavy blow for both European consumers and Gazprom, and it is difficult to predict the course of events in the future.”