EU gas soars €110/MW-hour on Christmas Eve as Putin says Nord Stream to lower prices

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EU gas soars €110/MW-hour on Christmas Eve as Putin says Nord Stream to lower prices

In what should be contemplated as a much-awaited sigh of relief for the 26-member bloc which had been grappling with a severe natgas shortage alongside an unfathomable scale of price-surge amid an inexcusable indecision from European superpowers to pick a side following an escalation in lobbying efforts from Biden Administration to block Nord Stream 2 exports - eventually cutting more than 400 million eurozone residents' holiday season to ribbons - Russ President Vladimir Putin said on Friday that natgas exports through Russia’s Nord Stream 2 pipeline under the Baltic Sea, which in effect would cut off a lucrative source of tax revenues for Kiev, would decline gas prices in Western Europe by a substantial margin.

On top of that, Nord Stream 2, which had been completed on September and currently has been filling the pipelines for natgas exports, had faced steep resistance from the US since late-2019 alongside Ukraine and Poland that said the pipeline would step up Kremlin’s leverage on Europe.

Putin says Nord Stream 2 exports will lower Europe gas prices

In tandem, latest remarks from President Putin came forth amid a swathe of US sanctions on Nord Stream 2, which in effect would unveil a direct route of gas exports from northern Russia to eastern part of Germany, as the United States had long been vying to vent out a way to sell off its own natgas to a lucrative European market that remained entirely dependent on Kremlin for energy exports over past decades.

Besides, last week, Germany, the bloc’s largest economy, appeared to have bowed down to US pressure and echoed the Biden Administration tone over a sanction on Nord Stream 2 pipeline citing growing military presence on Ukrainian border, eventually obliviating a beacon of hope for eurozone to receive natgas at a much lower price as EU natgas prices extended losses to €110/megawatt-hour on Christmas Eve.

Currently, on an average, major eurozone retailers were purchasing natgas at a price which is about six- to seven-fold of US natgas prices. Nevertheless, on Friday, Russ Energy Minister was quoted saying in a statement that Europe had no one to blame but itself for the staggering energy crisis.