The recent sanctions imposed on the Russian energy sector are playing against the EU. The region is now grappling with a serious energy crisis, and more is yet to come. Thus, Bloomberg columnist Javier Blas believes that the issue of gas supplies to Europe may persist until 2024. Currently, natural gas prices are still holding below the all-time high recorded in March. At the same time, there are worrisome signs of a more protracted disruption to the economy than markets anticipated. Javier Blas fears that the consequences of Europe's gas crisis can be worse than expected and may last until the winter of 2023 or even through 2024. Back in March, German manufacturers could lock in gas prices for 2023 at about €80 per megawatt hour. Now they have to allocate a record high €145 to hedge the same price risk. At the moment, Moscow has the leverage to manipulate European gas supplies, and the question remains when it will want to use it. Gazprom has already suspended gas supplies via Nord Stream 1. The halt took place during the annual maintenance of the pipeline from July 11 to July 21.
