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Gazprom Germania headquarters: the German government has nationalized the supplier © REUTERS

European gas prices rose above 100 euros per megawatt hour on Thursday due to new uncertainties about the flow of gas from Russia to Europe.

The concerns reflected Moscow’s imposition of sanctions on major gas companies that Berlin took control of and the disruption of a gas pipeline through Ukraine.

Futures contracts linked to TTF, the benchmark European wholesale gas price, rose more than 12 percent to €106 per megawatt hour, up from €90 per megawatt hour earlier in the week, as gas supply Russian gas to the mainland was affected by a series of problems. new threats.

Late on Wednesday, the Kremlin imposed sanctions on Gazprom Germania, a group of companies formerly owned by Gazprom, the Russian state gas company, which Berlin took over last month. The new legislation prevents Russian entities from selling gas or conducting transactions with various Gazprom Germania companies.

Astora, one of its subsidiaries, is one of the largest holders of underground gas storage in Germany and Wingas, WIEH and WIEE, which are also under sanctions from Moscow, are gas distributors in Germany that carry out large transactions with Gazprom.

The German government has yet to outline the impact the sanctions may have on gas supplies. Andrei Belyi, a gas consultant at Estonia-based Balesene, said the Russian state had “increased the level of uncertainty for European buyers and consumers”.

That came after the Ukrainian gas pipeline operator a day earlier shut off the flow of gas through one of the two main pipelines that carry Russian gas through the country to Europe.

Gas traders have been focused for weeks on a new ruble payment mechanism demanded by Russia, which has led to Poland and Bulgaria running out of Russian gas. The dispute could flare up again later in May, when payments from more European buyers are due.

As a result of uncertainty over Russian gas supplies, German electricity prices next year hit their highest level so far this year on Thursday at €227.75 per megawatt hour, according to Refinitiv. Electricity prices tend to follow gas prices higher.

Line chart of traders concerned about flows from Russia to Europe showing jumps in European gas price

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