Financial Times: gas prices on the global market have fallen after Putin’s statement

Global gas prices have fallen after a statement by Russian President Vladimir Putin on the willingness of the country to stabilize energy prices. This is stated in the material of the Financial Times.

“Market gas prices turned sharply lower Wednesday after Russian President Vladimir Putin said his country was ready to stabilize soaring global energy prices that threaten to curb industrial activity and boost inflation sharply,” the article said.

The day before at the opening of trading the historic high price for the European gas was $1900 per 1 thousand cubic meters. Later on the price went down by $600.

Also on Wednesday, during a meeting on the global energy market, the Russian leader pointed to the difficult situation on the European energy market. According to him, “drastic rash actions” caused a serious imbalance.

Deputy Prime Minister of Russia Alexander Novak, commenting on the situation in Europe, said that Nord Stream-2 can help the European market stabilize.

During the meeting, he cited speculative factors and poor forecasting as reasons for rising gas prices in Europe.

Putin, in turn, said that the supply of gas on the St. Petersburg exchange can be increased, but not on spot trading in Europe. He noted that Russia does not need a speculative frenzy. The head of the state urged to think about a possible increase in supply on the market, but to do it carefully.

According to the Prime Minister of Hungary Viktor Orban, one of the reasons of the crisis on the energy market of Europe was caused by mistakes in the actions of the European Commission. According to him, the European Union should change some “green” norms, otherwise all countries will suffer.

On October 5, the finance ministers of France, Spain, Greece, the Czech Republic and Romania issued a statement in which they asked the EU to develop a toolkit for an immediate response to gas price hikes. The statement said the EU needed to coordinate purchases in order to strengthen the negotiating position of European states and modernize the energy market.

On the same day, Russian President Vladimir Putin said that speculation on climate issues and reduced investment in the extractive industry had created a real hysteria and confusion on the European energy markets. He also stressed that the transition to alternative sources of energy must be smooth. According to the head of state, Russia has all the possibilities for this.