- Russian gas exports to Europe via Ukraine spiked nearly 38% Thursday, Bloomberg reported, citing data from Ukraine’s grid operator.
- European natural gas prices soared as much as 62% on the same day.
- Germany this week pulled out of the Nord Stream 2 gas pipeline project with Russia.
Natural gas exports flowing from Russia to Europe through Ukraine ramped up on Thursday, jumping by nearly 38% from a day earlier, according to data reported by Bloomberg.
Figures from Ukraine’s grid operator further showed that these flows were expected to rise by around 24% on Friday compared with Thursday’s levels, per Bloomberg.
Western Europe is heavily reliant on Russian gas supplies, and the increased flow Thursday underscored that continuing dependency. Some 41% of the European Union’s gas imports come from Russia, more than twice as much as Norway, the next-largest supplier, according to the most recent EU data.
The increased gas flows from Russia to Europe on Thursday came after Russian President Vladimir Putin ordered troops into Ukraine. World governments hit Russia with sanctions in response but the US defended a decision not to include the energy sector in its measures.
Russian state-owned energy giant Gazprom said Thursday that gas flows to Europe via Ukraine were as expected.
European gas prices soared as much as 62% on Thursday, the largest increase since 2005, per data reported by Bloomberg.
Russia is the world’s second-largest producer of natural gas, behind the US, according to the Energy Information Administration.
Earlier in the week, Germany, which relies on much of its natural gas from Russia, halted the Nord Stream 2 gas pipeline deal with Moscow after Russian forces entered Donetsk and Luhansk, two eastern breakaway regions of Ukraine. Suspension of Nord Stream 2 had no impact on gas supplies because the pipeline wasn’t operational.
Citadel CEO Kenneth Griffin wrote in The Wall Street Journal that Europe should reduce its reliance on Russian gas exports and the US should help the continent meet its energy needs by increasing oil production.