Europe gas prices surge putting more money in Vladimir Putin’s pockets

With fierce fighting around Kursk, just over the Russian border from Ukraine, the price of European gas has shot up to the highest level this year.

The Sudzha station, which supplies large areas of the continent with natural gas, sits in the Oblast where today’s military exchanges have taken place.

Markets have reacted to the conflict in the region, concerned that the flow of gas into Europe will be disrupted.

According to Bloomberg, prices rose to £33 (€39) a megawatt-hour due to the eruption of violence, putting even more money in Vladimir Putin‘s pockets as Russia continues its war with Russia.

Although European capitals have sought to reduce their reliance on Russian gas since Putin’s brutal invasion of Ukraine, many Kyiv-allied states still use the natural resource.

Austria in particular is acutely reliant on Russian gas. According to Euronews, the central European state confirmed in February 2024 that two months earlier 98 percent of its gas imports came from Russia.

Austria’s partly state-owned OMV energy firm has a deal with Russian gas giant Gazprom until 2040. It says it is trying to get out of the agreement, but notes that the EU would need to impose sanctions on Russian gas in order to make the cancellation of the agreement legal.

Hungary also imports Russian gas and recently struck a deal with Turkey for gas that comes from Putin’s regime.

Benjamin Hilgenstock from the Kyiv School of Economics told the outlet that countries have been seduced by attractive contracts with Russia.

He said: “Unless and until there is an embargo on Russian natural gas, then it’s really up to these countries to do this.”