The recent events in Crimea have seen gas prices rise by 2.8% amid concerns that an escalating situation would lead to trade sanctions on Russian natural gas exports which account for a fifth of the country’s economy.
Additionally, around a quarter of the EU’s gas supply comes from Russia, half of which is piped through Ukraine. There is now a real risk that Ukraine would block Russia from using its pipelines, meaning alternative energy supplies from for example the US, would need to be obtained. Oil and gas companies in the region are already preparing for disruption. Chevron, the American energy giant that has invested heavily in Ukraine, has tightened security for employees involved in exploring reserves of shale gas.
The EU better get ready as they are the real down the line energy for Russia’s gas through the Ukraine