Russia offered to deliver more gas to Europe. But analysts are uncertain about i

Posted by Kapil on October 19th, 2021

Highlights

• Europe is in the midst of an energy crisis, with high demand and limited supply putting downward pressure on gas prices.
• On Wednesday, Russian President Vladimir Putin intervened, pledging to enhance Russia’s gas exports to Europe.
• Analysts are skeptical that Russia can and will follow through on its pledge.

LONDON, UK – Winter hasn’t even arrived yet, and Europe is already witnessing a gas market crisis due to high demand and insufficient supply, putting downward pressure on prices. As a result, when Russian President Vladimir Putin intervened on Wednesday, proposing to expand Russia’s gas supplies to Europe, regional gas prices (which had risen by an astounding 500 percent this year) plummeted, and markets exhaled a sigh of relief.

Market analysts soon deduced that the offer to boost supply to Europe was likely made to put pressure on Germany to approve the Nord Stream 2 gas project (which will transport Russian gas to Germany via the Baltic Sea), as Russia is awaiting approval by Germany’s energy authority.