Russia’s gas business will never recover from the war in Ukraine
Hopes of a Chinese rescue look increasingly vain
When Russia’s leaders stopped most of the country’s gas deliveries to the EU in 2022, they thought themselves smart. Prices instantly shot up, enabling Russia to earn more despite lower export volumes. Meanwhile, Europe, which bought 40% of its gas from Russia in 2021, braced itself for inflation and blackouts. Yet two years later, owing to mild winters and enormous imports of liquefied natural gas (LNG) from America, Europe’s gas tanks are fuller than ever. And Gazprom, Russia’s state-owned gas giant, is unable to make any profits.
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This article appeared in the Finance & economics section of the print edition under the headline “Down the pipe”
Finance & economics May 4th 2024
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From the May 4th 2024 edition
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