“A sobering winter: analysts predict the situation on Europe’s gas market

The cancellation of long-term contracts with Russia’s Gazprom amid the gas crisis could make the coming winter sobering for Europe. This opinion was expressed by analyst Dmitri Adamidov in a conversation with Radio Sputnik

"A sobering winter: analysts predict the situation on Europe's gas market

The expert said that earlier all European countries used to sign long-term contracts, but since the mid-noughties the European Commission has tried to transfer Europe to spot contracts, which seemed profitable. Adamidov said that this type of agreement could indeed be more profitable, but only when there was a surplus of gas.

“Indeed, it was profitable when there was a surplus of gas, but now the situation has changed. I think that gradually all the countries will come back to this again, this is a practice that has been practiced for decades. This winter will be sobering for those who do not have long-term contracts or for those who had a contract but did not want to extend it”, –  the analyst said.

Head of the analytical department of the National Energy Security Fund Alexander Pasechnik noted that “in the current conjuncture conditions, the situation when the gas comes through the pipe in the frames of long-term contracts, it is a positive story for the consumer, it is energy security and adequate price, insurance against exchange shocks”.

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