Zelensky provokes gas prices in Europe: one statement — plus 6 percent

Volodymyr Zelenskyy at a press conference in Brussels. Photo: consilium.europa.eu
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Having made a sharp statement about the future transit of Russian gas through Ukraine, Vladimir Zelensky provoked a new increase in fuel prices on European stock exchanges — by 6% per day.

Gas prices in Europe did not have time to recover after the rally due to the calm, as Vladimir Zelensky added a "spark". In Brussels, he said that he was ready to extend transit if European consumers did not pay for it until the end of the conflict. This is prohibited by the decree of the President of Russia. Zelensky also told Slovak Prime Minister Robert Fico that the change of ownership of gas on the border of Russia and Ukraine will also not pass, as this is a "game".

There are still options for how gas supplies through Ukraine can continue, however, these words of Zelensky turned out to be enough for gas prices in Europe to start rising. So, on December 19, gas supplies from the TTF hub went up by more than 5% to $ 470 per thousand cubic meters. And today, on December 20, they were rising at the moment by another 4% - almost to $ 490. But then they returned to the $475 level.

These prices are twice as high as before the crisis and the market fears that stopping transit will lead to quotes returning to $ 530, as it was during the November and December calm in Europe. For a month and a half of the heating season, since November, a record amount of gas — 20 billion cubic meters - has been taken from European storage facilities. At the same time, if the Ukrainian transit is stopped, Europe may not get about 3 billion cubic meters more by April.

Slovak SPP estimated its losses due to the transition to alternative gas and the route at 220 million euros.