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Gas prices have risen as the EU looks at new sanctions against Russia

5 April 2022
Consumers
Energynomics

Reference prices for natural gas in Europe rose by 7% on Monday morning amid growing fears about gas supplies due to new sanctions on Russia, Bloomberg reports.

Some EU member states have called on the EU bloc to swiftly impose new sanctions on Russia following reports of a series of atrocities by the Russian military near Kyiv. German Chancellor Olaf Scholz has said that in the coming days his country and its allies will agree on “new measures” against Moscow, without giving further details. For her part, German Defense Minister Christine Lambrecht said the EU should discuss stopping gas purchases from Russia, according to Agerpres.

In addition, traders are following the decisions of gas buyers after Moscow authorities began demanding that payments be made in rubles. Although some countries are still considering Moscow’s demands, Lithuania, a relatively small customer, has decided to stop importing gas from Russia in response to the ruble payment request.

At around 8:24 a.m. Monday, on the Amsterdam Stock Exchange, gas futures quoted for next month were up 2.6% to 115 euros per Megawatt-hour. Over the past week, prices have risen by 11%, the first weekly increase in the last month.

”Geopolitical risks could keep rising gas prices for longer. The Kremlin’s demand that European countries pay in rubles for Russian gas raises the stakes for supply and the possibility of disruptions,” say Bloomberg Intelligence analysts Henik Fung and Chia Cheng Chen.

Autor: Energynomics

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