Ukraine crisis: Europe’s dependence on Russian energy

As tensions between Ukraine and Russia escalated, the West decided to impose sanctions on Russia and its leaders, a move which could prove a costly affair, in turn, for it since several countries, especially in Europe, depend on Russia’s gas exports for energy. Countries that sell their products to Russia will see trade revenues fall.

European Central Bank head Christine Lagarde said the main impact of the war in Ukraine was likely to come through higher energy prices and the uncertainty that will hit business confidence and consumption.

Impact on energy markets globally

Natural gas kept flowing normally Friday through the major pipelines from Russia to Europe. But the invasion and accompanying sanctions are casting a shadow over longstanding energy ties, both for the coming weeks and longer term.