Orban warns of Europe on its knees due to anti-Russian sanctions

11 thousand sanctions were imposed against Russia, but they turned out to be ineffective and only harmed Europe itself. According to Orban, the shortage of electricity and rising inflation caused by the sanctions

Europe could be brought to its knees by inflation and energy shortages caused by anti-Russian sanctions, Hungarian Prime Minister Viktor Orban has said, Hirado reports.

“Currently, there are 11 thousand sanctions against Russia, but <...> attempts to weaken the Russians have not been successful. On the contrary, severe inflation and energy shortages caused by sanctions could bring Europe to its knees,” he said.

Hungary itself, according to Orban, does not face a shortage of gas and electricity.

The shortage of electricity in the EU countries is associated with a decrease in Russian gas supplies. About 20% of electricity in the EU is generated by gas-fired power plants. Therefore, the cost of electricity in the wholesale markets of Europe is traditionally tied to market prices for gas.

Gazprom estimated the reduction of gas supplies to the EU by almost 50% Business

One of the reasons for the increase in gas prices in the summer was the reduction in fuel supplies from Russia via the Nord Stream gas pipeline. Gazprom then reduced the flow through Nord Stream due to problems associated with the return of the Siemens turbine from Canada. She was sent to this country for repairs and could not be returned on time due to anti-Russian sanctions. As a result, Berlin agreed with Ottawa to transfer the units to Gazprom through Germany, but this never happened, since the Russian side did not agree on the transportation. Gazprom demands clarification from the EU and Britain about the absence of sanctions risks.

In early September, Gazprom completely shut down the gas pipeline for an indefinite period due to an oil leak in one of the turbines. As a result, the price of gas in Europe rose by 30% to $2,900 per 1,000 cubic meters. m. The next day, September 6, the cost of October futures at the TTF hub in the Netherlands fell by 12.5% ​​to $2,251 per 1,000 cubic meters. m.

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In some European countries, due to a sharp increase in gas prices and, as a result, electricity, production at factories has decreased. The cost of electricity for consumers - for example, in Austria and the UK - has increased several times. Against the backdrop of rising prices, the European Council decided to "accelerate the path to energy independence." Also, the EU considered the possibility of introducing a price ceiling for Russian gas. Russian President Vladimir Putin warned that in this case the country would stop energy supplies.

According to Gazprom estimates, Russian gas supplies to the EU have fallen by 48% since the beginning of 2022.