The war has drastically reduced Russia’s gas exports to Europe, prompting the Kremlin to seek alternative markets. However, China, cautious of over-reliance on Russia, cannot fully replace Europe’s demand. Putin’s plan to leverage gas deliveries to Europe has backfired, forcing him to pivot towards China for sustenance.

Gazprom, once a potent tool in Putin’s foreign policy, now faces a historic low in production. The company’s misalignment with LNG production and export has limited its capabilities. Putin’s attempts to bolster Gazprom’s international standing have faltered after Europe’s resilience to supply cuts.

While China offers potential, it cannot fully compensate for Europe’s demand. Gazprom’s market value has plummeted, making a recovery unlikely. The company’s production is at its lowest in 30 years, revealing vulnerability to international pressure and Putin’s strategic decisions.

China’s lessons from Europe’s dependence on Russia have led to cautious energy imports. A third gas contract with China is uncertain, as Russia’s negotiating position weakens. Gazprom’s significance to Putin persists, but investment in LNG export capacity is now recognized as crucial.

In pursuit of a new market, Gazprom eyes Turkey, proposing a “gas hub.” Meanwhile, domestic gas supply yields little profit. Russia’s energy landscape is shifting, and Gazprom’s influence faces uncertainty.

Subscribe to our free newsletter!

You have been successfully Subscribed! Ops! Something went wrong, please try again.
  • All
  • Articles
  • Financial news
  • Market Update
Europe Reduces Gas Demand Amidst Ukraine Crisis

21 February 2024

Since the Russian invasion of Ukraine, Europe has decreased its gas demand by 20 percent, reaching the lowest level in a decade. Consumption has been curbed, and gas from Russia has been replaced by LNG (liquefied natural gas). The decline has been particularly noticeable in large countries such as Germany, Italy, and the United Kingdom, […]

Cocoa Prices Soar: Challenges and Impacts on Chocolate Industry

14 February 2024

There appears to be no halt in the upward trajectory of cocoa bean prices. In 2023, cocoa emerged as the top-performing commodity, skyrocketing by 65%. Just two months into the new year, there’s already another surge of over 40%. This places cocoa, the vital ingredient for chocolate, at the forefront of Bloomberg’s data aggregator overview […]

European Central Bank Official Discusses Blockchain Technology’s Potential Impact on Financial Sector

13 February 2024

Blockchain technology is still in an exploratory phase in the European financial sector, but widespread adoption in wholesale payments is expected in the coming years, prompting central banks to take action. This was stated by European Central Bank member Piero Cipollone while opening the 30th Assiom Forex Congress in Genoa, emphasizing that “central banks cannot […]

Prev
123

Stay informed about the economy and financial markets. Reading financial insights and market news can help individuals make more informed investment decisions. It can also provide information on economic trends and events that may affect the performance of different investments. Additionally, it can help individuals stay up-to-date on changes in government policies and regulations that could impact the financial markets. Overall, staying informed about financial and market news can help individuals make more informed decisions about their investments and manage their financial portfolios more effectively.