They coped with the Kremlin's footrest: how Europe survived without gas from the Russian Federation and what will happen next

Gas prices in Europe fell by almost 60% in 2023, and at the beginning of 2024 they fell by another 12%. In Europe, despite almost complete Russian gas blockade, gas prices are almost twice as lower than in an abnormally warm January 2023. In Moscow, for the second consecutive year, plans to freeze the EU countries have not come true due to record gas reserves and renewable energy. Bloomberg wrote about it on January 21.

Thus, despite the exacerbation of the Palestinian-Israeli conflict in October last year and the problems caused by international deliveries through the Red Sea, prices for liquefied natural gas (LNG) in Europe continue to fall. It is noted that gas prices in Europe decreased by almost 60% in 2023, and in 2024 fell by another 12%.

Journalists believe that this trend is related to record gas reserves, broad investments in the development of renewable energy sources, as well as small economic growth, through which large industrial states after the energy crisis are now traded below 30 euros for megawatt-hour. This is about a tenth of peak levels that were fixed in 2022. "It is the second winter that Europe is experiencing without Russian gas.

The fact that there is a precedent-winter 2022-2023, which has gone without problems, helps traders to calm the nerves," said Kim Facty and Gas Head of the European Oil and Gas Studies. However, according to the publication, the countries of Europe, coping with the crisis, found themselves in a completely new reality, which has their own problems. Now the EU is more relied on renewable energy sources, and the block will have to cope with the intermittent electricity production.

Against the background of refusal of Russian gas, because of the invasion of Moscow into Ukraine, the European Union had to look for other sources to meet the needs of consumers in fuel. That is, the struggle for the share of foreign supplies of liquefied natural gas with other parts of the world will begin. "We are now rely on global factors that can change rapidly.

However, prices can increase again, even in this heating season, if there is a sudden termination of deliveries or a long period of cold," - explained the head of the Met International gas trade in Switzerland. By the way, more than 1 billion cubic meters of gas were produced in Ukraine in 2023. New wells have helped to achieve such a result, as Naftogaz noted, which has been opened in total 86.