Energer price23 Feb 2022 13:19
UK gas prices set to rocket if Russia retaliates to EU sanctions over Nord Stream 2 pipeline
Katie Grant 16 hrs ago
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Energy bills are set to soar even higher in the UK if Russia seeks to cut off gas supplies in response to European sanctions.
The UK natural gas price benchmark surged by 10 per cent on Tuesday, while the European equivalent leapt 13 per cent as traders reacted to Russia’s invasion of Ukraine.
Mainland Europe is heavily reliant on Russia for gas imports – in 2020 more than 38 per cent of the natural gas used by the European Union was imported from Russia, according to Eurostat, the EU’s statistics office.
Only about three per cent of UK’s gas comes from Russia, but consumers would still likely take a heavy hit if Russia responds to European sanctions by cutting off gas supplies, driving wholesale energy prices even higher than they already are.
Russian officials mocked Europe with speculation of soaring gas prices on Tuesday after Germany confirmed it would pull the plug on the Nord Stream 2 gas pipeline in response to President Vladimir Putin sending troops into Ukraine.
German Chancellor Olaf Scholz instructed his economy ministry to take steps to ensure sure that the controversial pipeline, intended to transport gas from Russia into Germany, “cannot be certified at this point in time”.
Without the key document needed for certification, Nord Stream 2 – which would have bypassed Ukraine, a traditional transit nation, and strengthened Russia’s grip on the European gas market – the project will be halted.
The ramifications could be far-reaching and lead to even higher energy costs for British billpayers.
Dmitry Medvedev, the former Russian prime minister and now deputy chair of Russia’s Security Council, poured scorn on the Chancellor’s decision, mocking Europe for the rocketing gas prices, he warned would come.
He tweeted: “Welcome to the brave new world where Europeans are very soon going to pay €2,000 [£1,670] for 1,000 cubic meters of natural gas!”
https://www.msn.com/en-gb/news/world/uk-gas-prices-set-to-rocket-if-russia-retaliates-to-eu-sanctions-over-nord-stream-2-pipeline/ar-AAUaTJy?li=AAnZ9Ug
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