Russia’s energy crisis is escalating, and so are European costs

European benchmark natural gas prices jumped 28% on Monday morning to reach €274 ($272) per MWh. nodestream 1 pipeline Indefinitely claiming to have discovered a turbine oil leak.

Last year, the pipeline supplied about 35% of Europe’s total gas imports from Russia.However Gazprom from June Just follow the stream along Nord Stream 1 20% of its capacityciting maintenance issues and a dispute over a missing turbine caught in Western export sanctions.

Euro falls on Friday news of pipeline indefinite closure Less than $0.99 monday — the Lowest level in 20 yearsPound hits $1.14, lowest since 1985 On local economic activity and government budgets.

Some countries are preparing large sums of money to contain the pain.

Together with the measures so far, the total government aid will be €95 billion ($64 billion), about 2.5% of Germany’s GDP, Berenberg chief economist Holger Schmieding said in a note Monday. said to do.

winter preparation

Russia’s gas supply to “unfriendly” European countries and energy companies that refused to pay gas bills in rubles instead of euros or dollars as stated in contracts, as Russia claims have already stopped.

“Irrespective of this, we have already noted several times that the Portovaya Compressor Station has enough additional turbines to run Nordstream 1,” a spokesperson told CNN Business.

As the energy conflict escalates, EU countries are quickly filling up their gas storage facilities. Stores are currently filled to 82% of capacity, according to Gas Infrastructure Europe data. This is over 80% of the target the authorities have set for each country to reach him by November.

“Despite the serious risk of energy shortages, large parts of Europe expect to be able to weather the cold season without shutting down significant parts of their industry due to massive rationing of gas supplies.” said Schmieding in a note.