Europe is currently experiencing an unprecedented energy crisis which has led to increased gas prices, amidst scarcity and other things. This crisis has been further worsened following Russia and Ukraine war, the sanctions imposed on Russia, and Russia’s perceived retaliation. Following the war, European countries through the European council imposed several sanctions against Russia, to make it reconsider its stance on the ongoing war. Some of these sanctions have been implemented, with a complete ban on the importation of oil from Russia set to take effect at the end of the year.
Russia is the largest exporter of natural gas in the world. According to reports, in 2021, Russia exported about 240 billion cubic meters of natural gas to the world. Also, Russia supplies 40% of gas to Europe, with Germany as its major importer. Following the sanctions on Russia, it cut its supply to Europe. The Nord Stream pipeline which stretches under the Baltic Sea to Germany sends a maximum of 170 cubic meters of gas daily. However, in June 2022, the supply was curbed to 40 cubic meters and further reduced to 20 cubic meters. Russia stated the need for maintenance as the reason for the reduction, the move has been described as political by European Union.
With the winter approaching, the following are its implication for the energy crisis.