Russia is losing its gas lever of influence on Europe.
Bank of America reported that the situation with gas in Europe quickly changes from a bad scenario to an even worse one.
This is reported business insider.
Russia is losing the opportunity to influence Europe with the help of gas. Bank of America warned that the Kremlin could use this factor to create a crisis soon.
“Russia’s gas lever is weakening, so the country may decide to use it before it loses it,” the bank notes.
According to the Bank, after reducing the capacity of the Nord Stream 1 gas pipeline to 20%, the accumulated reserves by the winter period may not be enough. Therefore, the EU is now planning a large-scale demand rationing.
Prices for natural gas futures on the TTF approached 200 euros per megawatt hour ($204), not far from the 300 euros reached in March.
“As pessimism about supplies from Russia grows, spot and forward natural gas prices in Europe are moving into a higher range,” Bank of America said in a statement.
As UNIAN reported earlier, German Foreign Minister Annalena Burbock said on July 26 that the European Union will not succumb to Moscow’s gas blackmail.
She also added that if Russia completely blocks Nord Stream 1, then “there is no doubt” that Germany will continue its sanctions policy against Moscow.
On July 26, the EU countries agreed to reduce by 15% of gas consumption compared to their average consumption over the past five years, for the period from August 1, 2022 to March 31, 2023, with a possible extension until the end of May.