Full Shutdown
In our 2022 Nord Stream Pipeline timeline, we might have reached the third and what could be the final event in this saga. First, Russia temporarily halted gas flow through the pipeline for “maintenance,” sending Europe into a state of worry. Soon after, they resumed gas flow at 30 percent capacity, which was lower than usual as they argued that Western sanctions prevented them from reaching normal capacity. This time, Russia decided to cut the excuses and give Europe the worst punch they could’ve received.
Russia has once again cut gas flow from the Nord Stream Pipeline for what they said would be a long period of time due to sanctions from the West. Energy prices in Europe rose by as much as 33 percent after the announcement, and this triggers the worst-case scenario for the continent. A recession is all but inevitable and rationing of energy and blackouts could occur in the next few months as Europe bundles up for what is going to be a somber winter. Ever since the first two episodes, Europe has been building up its gas storage in preparation for this event, and analysts believe that survival might be a possibility although at record prices. This is furthered by OPEC’s recent decision to cut oil production globally, which is slated to help Russia even more. Europe has made it clear their support for Ukraine won’t change, but it makes you wonder how the public is feeling considering the economic burden being placed on them.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
