Geopolitical tensions and the consequences on the gas market

Russia accuses the US, Ukraine and European states of being responsible for the cessation of Russian gas supplies. ‘The responsibility for the cessation of Russian gas supplies lies entirely with the US, the puppet regime in Kiev, and the authorities of the European states who sacrificed the welfare of their citizens in the name of financial support for the US economy,’ Maria Zakharova, a spokeswoman for the Russian Foreign Ministry, was quoted by the Tass news agency as saying.

IGI index value on the rise

The value of the IGI (Italian Gas Index) for 2 January was 50.80 euro/MWh, up from 1 January, when it stood at 50.23 euro/MWh. The index, calculated daily by the Gestore dei Mercati Energetici (GME), represents a tool for interpreting and evaluating the dynamics observed on the gas markets in Italy, and is a transparent and replicable reference for operators for hedging operations and/or supply contracts.

The reactions of the European Commission

The European Commission stated that the cessation of Russian gas supplies through Ukraine ‘was expected’ and that it had been coordinating with member states for over a year to secure alternative gas supplies. The main objective is to secure gas for Central and Eastern European countries, and according to the European Commission, the EU’s gas infrastructure is flexible enough to allow non-Russian gas supplies via different routes.

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