Crisis in Ukraine: conflict raises concerns over rising gas prices

Russia has a formidable weapon in its hands: its gas, the largest reserve in the world. This stock is essential for Europe, since 46% of its gas comes from Russia. For many countries in Eastern EuropeEastit is more than 75%. Germany is supplied with 55% of Russian gas, and France around 20%. The current tensions are already having an effect on prices, which are starting to soar again. “[Rien qu’] today the market took about ten percent“, reports Philip Chalminuniversity professor Paris Dauphine.

To replace Russian gas, France could import more gas from its other suppliers, Norway or Algeria. However, their production capacities are limited. It could also turn to liquefied gas, imported by boat. Among the main producers, we find the United States, Australia and Qatar, which announced on Tuesday February 22 that it could not fully meet demand. Furthermore, the supply of liquefied gas is longer and more expensive.