[World Now] Putin’s shaky ‘energy card’… Gas prices on the decline

7 months of Russian invasion of Ukraine.

The power of the ‘energy card’ used by Russian President Vladimir Putin against European sanctions is slowly waning.

The Wall Street Journal predicted on the 18th local time that Russia’s strategy would reach its end as energy prices, once through the roof, turned to a downward trend, and Europe was also looking for alternatives others.

The real price of Brent oil has fallen from the level of $120 per barrel in June to the current level of $90.

The European wholesale natural gas price also fell by more than 45% from the peak at the end of last month to a level of 185 euros on the 16th.

In line with the downward trend in energy prices, the Russian treasury also appears to be shrinking.

According to data released by the Russian government, the cumulative fiscal surplus up to August this year was 137 billion rubles, or about 3.140 trillion won in Korean currency. Compared to the 100 million won, it has decreased significantly in just one month.

Europe before winter, diversifying import sources

Europe, which was hit by an energy crisis before the winter, is gradually finding stability by looking for alternatives from different angles.

Europe has been trying to diversify its import sources by installing liquefied natural gas export terminals in the Netherlands and other countries.

In addition, we are pushing for a bill to reduce the burden on consumers suffering from energy shortages by collecting a portion of excess profits from power plants and energy companies as a random tax.

The gas storage for the winter is already 85% full, surpassing the original target of 80% by the end of October.

David Denhollander, co-founder of DC Energy Trading, a Dutch electricity trading company, said that the overall energy situation in Europe is stabilizing.

Experts say it won’t be easy, but Europe expects enough gas to survive this winter.

Russian gas company Gazprom [사진 제공:연합뉴스]

“Russian influence on European energy will diminish”

As Europe, which was thought to be a ‘white flag’, gradually prepares for winter, Russia’s position is getting smaller and smaller.

Russia has already abandoned the title of ‘reliable energy supply partner’, which it has been promoting as a political stimulus for Europe after the Ukraine war.

Furthermore, it is assessed that it has become more difficult to turn Europe away from Russia as it has been continuously pushed back from the battlefield recently and is even suspected of committing crimes war on the battlefield in Ukraine.

The Wall Street Journal analyzed that President Vladimir Putin’s energy strategy would ultimately fail as Russia’s influence on European energy declines significantly after this winter.