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Gas prices in Europe continue to rise as traders assess the effects of Russia’s plans to pay for ruble deliveries


President Vladimir Putin on Thursday signed a decree requiring “unfriendly” states against Russia, including EU countries, to pay Russian gas in rubles from Friday, otherwise they will stop supplying it.

In this context, traders are considering how this decree will affect the flow of gas.

According to Bloomberg data, Russia has given assurances that gas will continue to flow to Europe, but the lack of details on the impact of the decision on contracts affects the price of gas. The market is also affected by colder weather estimates. Temperatures below normal levels will be recorded in most parts of Europe next week, according to the Maxar report, with traders expecting increased demand for heating buildings.

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Thus, on Friday morning, the gas quotations with delivery next month on the Amsterdam Stock Exchange rose by 0.9%, to 127.05 euros for a Megawatt-hour, informs Agerpres. In March, prices recorded the most significant monthly advance in November.

Gazprom announced on Friday that it will continue to deliver natural gas to Europe via Ukraine in line with European customer requests. The company announced that demand for natural gas stood at 108.4 million cubic meters (lcm) on Friday, down from 109.5 (lcm) on Thursday.

Russia’s decision to demand payment in rubles for its gas supplies is Moscow’s response to Western sanctions imposed on it after the invasion of Ukraine, especially the freezing of Russia’s assets abroad, a measure by which Western states have blocked Russia’s access to $ 300 billion in its foreign exchange or gold reserves.

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Prior to this decision, the European Union had set itself the goal of reducing its Russian gas imports by two-thirds this year, with the aim of making it no longer dependent on energy imports from Russia by 2027.

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