Gas prices in the region will surge by 100% more than previously projected, Kirill Dmitriev has said
Kirill Dmitriev. © Sputnik/Grigory Sysoev
Gas
prices across the EU are set to rise by at least 100% more than
previously forecast, Kremlin envoy Kirill Dmitriev has said, as bloc
officials continue to push member states to shun Russian energy.
Dmitriev’s
remarks come as the escalating Middle East crisis triggered by the
unprovoked US-Israeli attack on Iran has sent global oil and gas prices
soaring.
At the same time, the EU has continued to struggle with
the consequences of its move to sever energy ties with Russia over the
Ukraine conflict, as well as its controversial green energy policies.
“We forecast at least 100% higher [gas prices in the EU] than previously projected, as Europe takes time to inevitably beg for more Russian gas,” Kremlin investment envoy Kirill Dmitriev said on Tuesday on X, commenting on projections by Bloomberg.
On
Monday, the news agency cited a report from HSBC as saying that natural
gas prices in the region are expected to be 40% higher than previously
projected for 2026 and remain elevated through the next year.
Energy
markets have faced renewed volatility following the launch of the
US-Israeli war on Iran and the ensuing disruption to global shipping
through the Strait of Hormuz – a key artery for global supplies of oil
and liquified natural gas (LNG). Traffic through the strait has
reportedly dropped by 80%. Crude oil and European wholesale gas prices
have moved sharply higher, piling further pressure on energy-intensive
industries and sparking concerns about the EU’s energy security.
Bloomberg noted that the region is especially vulnerable to LNG
supply disruptions, with storage levels roughly 15% below the five-year
average following a cold winter.
The surge in gas prices projected
by HSBC sharply contrasts with US natural gas futures, which have
remained largely stable, Bloomberg reported. Ample stockpiles and LNG
export terminals operating near full capacity have reportedly insulated
the world’s largest gas exporter from global supply shocks.
The
latest developments in the energy sector have prompted some EU
politicians to step up calls to reconsider sanctions on Russia, after
Russian President Vladimir Putin warned that Moscow could halt gas
supplies to the bloc ahead of Brussels’ planned 2027 ban.