Natural gas takes centre stage in geopolitical tensions – Danske Bank

FXStreet (Barcelona) - The supply of natural gas is threatening to be the next major issue to deal with amidst the increasing tensions between Ukraine and Russia, commented Analyst at Danske Bank, Jens Pedersen.

Key quotes

“Yesterday Russian President Vladimir Putin threatened to shut down natural gas exports

to Ukraine including gas that passes through Ukraine to the rest of Europe”.

“ It was only a matter of time before Russia’s energy supplies would become a part of the geopolitical conflict over Ukraine”.

“A loss of Russian gas would be a significant blow to the European economy, which gets around 25% of its gas from Russia and around half of that via the Ukraine pipeline, and push energy prices higher”.

“However, it would also be a major loss for the freefalling Russian economy that needs every rouble in gas export revenue it can get. At the G7 meeting in Washington yesterday, finance ministers discussed whether to implement further sanctions on Russia”.

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