Gas prices in Europe have risen following the cessation of Russian transit through one of Ukraine’s main entry points as the war affects natural gas supplies.
The benchmark contract rose 6.8% in the opening, while now stands 2.9% higher at 101.68 euros per megawatt hour in Amsterdam.
Late yesterday, the operator of the Ukrainian gas network announced that it would stop accepting gas at the Sokhranivka metering station at 7 local time because it could not control the infrastructure in the occupied territories.
Russian gas giant Gazprom has rejected the Ukrainian network’s offer to move shipments to the other entry point, Sudzha.
This is the first time that the war in Ukraine has affected gas supplies to Europe. Russian gas was normally supplied from both points of entry despite the conflict, albeit for the longest time, at lower rates than provided for in the transit agreement.
The Sokhravinka plant manages about a third of the gas flows entering Ukraine.
The rest passes through Sudzha, which is further away from the occupied territories in eastern Ukraine.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
