“Why Russia’s Strategy to Cut European Gas Failed: Prices Hit 2-Year Low”

Moscow hoped that Europe’s dependence on Russian gas would force it to stop supporting Ukraine, but things didn’t go according to Russia’s plan.

The price of gas in Europe at the exchange trading fell below $350 per 1 thousand cubic meters m for the first time since June 2021 – the lowest point in 2 years, according to the London Stock Exchange ICE.

Thus, Russia’s strategy has completely failed: Moscow hoped that against the backdrop of rising energy prices, Europe would face a collapse of its own economy and problems with the heating season, which would force it to stop supporting Ukraine and compromise with Moscow.

However, the situation turned out to be diametrically opposite consequences: Russian gas weapons turned out to be disposable and worked only once, after which Europe switched to the supply of liquefied gas, cutting off supplies from the Russian Federation.

Moreover, former Russian Prime Minister Medvedev’s predictions of $5,000 per 1,000 cubic meters of gas have remained the dreams of a Russian politician. about this in his Telegram channel writes analyst Anatoly Nesmiyan.

“As you can see, there is very little left before the 5,000 euros predicted by Medvedev,” he notes sarcastically.

The break-even point for the European economy in terms of gas prices is about $650 per thousand cubic meters.

“As you can see, Europe will definitely not be able to collapse or freeze at current prices, even if it wants to. At the same time, gas storage facilities are already filled by about 60 percent, which is a record for this time, and, apparently, the Europeans are now, on the contrary, try not to rush to download, waiting for the price to continue to decline”– emphasizes the expert.

Recall that in March Russia’s revenues from oil exports were two times less than a year earlier: only $12.7 billion.

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Author: Mark Voroshilov