EU gas prices drops to lowest point since Russia-Ukraine war starts

European gas prices dropped to the lowest level on Tuesday since the start of Russia’s invasion of Ukraine at the end of February.

Despite the war as well as Western sanctions against Russia, natural gas from the country continues to flow to the European Union. Many EU countries are indirectly dependent on Russian gas, but want to reduce this dependence quickly.

On Tuesday morning, the price for gas on the Amsterdam gas exchange, which is the reference for European prices, has been reduced by 12% to about €84 per megawatt-hour. That is the lowest level since 23 February, the day before Russia invaded Ukraine.

Wheras on Tuesday, the decline had moderated somewhat to around €92/megawatt-hour.

As per Dutch media reports, it is possible that the demand for energy fell because there was less trading with the long Easter weekend ahead.

After the war started and the subsequent Western sanctions against Russia, the already high gas prices had again risen sharply. Russian President Vladimir Putin has previously demanded that gas be paid for in rubles, but the EU has warned the Member States that this is contrary to the sanctions imposed on Moscow.

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