The cost of energy has increased in Europe by over USD 1 trillion as a result of Russia’s war in Ukraine. And the biggest crisis in decades is really just getting started.

The region will need to replenish their gas supplies after this winter with little or no supply from Russia

Governments were able to minimize the impact on businesses and consumers by providing more than USD 700 billion in aid. But a state of emergency might persist for years.

EU Struggles with High, volatile Energy prices

EU Struggles with High, volatile Energy prices

While near-record prices, a race to fill storage past summer has temporarily relieved the supply crunch; nevertheless.

The EU was able to lower gas consumption by 50 billion cubic metres in the year. But the region still faces a projected 27 billion cubic metre shortage in 2023.

In September, sabotage damaged Nord Stream, the primary pipeline carrying gas from Russia onto Western Europe.

Government-backed purchases have made it easier for Europe to entice cargoes away from China. But the region’s colder climate and a prospect for a robust economic recovery in the wake of Beijing’s easing of Covid restrictions could make that far more challenging.