Gas Prices in Europe Reach Highest Level in Eight Months Following Kursk Attack

Gas prices in Europe have surged to their highest levels since December 2023, following an attack on Russia's Kursk region by Ukrainian forces. Prices have increased by 12% since the beginning of August, primarily due to uncertainty surrounding military operations and fears that Ukraine may stop the transit of Russian gas.

According to French newspaper Le Figaro, the gas price at the Amsterdam-Rotterdam-Antwerp (TTF) hub, which the EU predominantly relies on for pricing guidance, was recorded at €40.58 per megawatt hour last week. This translates to approximately €395-400 per 1,000 cubic meters. Although this is significantly lower than the nearly €300 per megawatt hour recorded in 2022, the upward trend remains concerning.

The rise in gas prices is attributed both to the ongoing military tensions and the potential cessation of gas transit from Ukraine to Europe. In 2023, Russia exported 14.54 billion cubic meters of gas through Ukraine, a decrease of 28.5% compared to 2022. The current contract between Gazprom and Ukraine's Naftogaz is set to expire at the end of this year, with Kyiv repeatedly announcing that it will not be extended.

It's worth noting that on August 6, the Kursk region of Russia was targeted by Ukrainian Armed Forces, and by August 12, it was reported that 28 settlements had come under Ukrainian control. The fate of about 2,000 residents in these areas remains unknown. As of August 12, the casualties from the Ukrainian attack in the Kursk region included 12 civilians killed and 121 injured, among them 10 children.