With Europe In Chaos, Putin Says Russia Ready To Help Stabilize Gas Market

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by Tyler Durden
Wednesday, Oct 06, 2021 - 12:59 PM

With European gas prices exploding overnight, and soaring as much as 40% today alone...

... with day-ahead electricity prices across continental Europe hitting record highs - Germany is above €300 per MWh. In Spain, it surged to €288 per MWh, that's ~550% above the 2010-2020 price average, and so on...

... prices abruptly reversed course after a glimmer of hope emerged out of the biggest European supplier, Russia, moments ago when Vladimir Putin spoke at an energy meeting in Moscow saying Russia is ready to help stabilize energy markets, adding that contrary to insinuations from Brussels, Gazprom has never refused to increase supplies to customers and Gazprom supplies to Europe may reach record highs.

Putin did not miss the opportunity to mock Europe's catastrophic handling of energy needs, saying that the gas crisis shows European authorities made mistakes. Of course, what he is referring to here is the inexplicable delay in the certification of the Nord Stream 2 pipeline which is so absolutely critical for Europe's energy needs.

And while Putin said that Russia has increased supplies to Europe, adding that Gazprom is increasing gas transit via Ukraine’s gas transportation system, and most likely will exceed its contract liabilities, a quick look at the actual flows of Russian gas into Germany's Mallnow via the Yamal-Europe pipeline show s that there is much to be desired.

Of course, what Putin meant to say is that Russia will increase supplies if and only if NS2 is launched, but that didn't matter for Europe's manic energy market where the price of UK gas plunged from all time highs on hopes Russia will indeed provide some reprieve from the unprecedented energy crisis.

Then again, as Daniel Lacalle points out, anything Russia does is likely to be at best a short-term fix for the EU which wants energy independence "without nuclear, coal, gas or oil and penalizing investment in copper and aluminium."