Novak pointed to Europe's instability in the gas sector

The increase in gas prices in Europe up to $700 per 1 thousand cubic meters shows that everything is unstable with gas in the European Union (EU) countries. This was announced on March 3 by Deputy Prime Minister Alexander Novak.

"Today's volatility, the rise in prices to $700 per 1,000 cubic meters of gas, in my opinion, only once again confirms that there (in Europe. — Ed.) very unstable (with gas. — Ed.)," Novak said in an interview with Channel One.

According to him, there is a shortage of gas on the European market, but Europe continues to "chop off the branches on which it sits." He also noted that oil prices are rising due to the reaction of world markets to events in the Middle East.

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On the same day, according to the London ICE exchange, the price of gas on the European stock exchange exceeded $ 700 per 1,000 cubic meters for the first time since January 2023. The current dynamics were recorded against the background of statements by the Islamic Revolutionary Guard Corps (IRGC) of Iran about the closure of the Strait of Hormuz. The increase in quotations since the beginning of the trading day exceeds 30%.

The day before, Maxim Chirkov, an economist and associate professor at the State University of Management, told Izvestia that the escalation of the conflict in the Middle East could lead to serious consequences for the global economy, primarily for the oil and gas markets. According to him, up to 20% of the world's oil supplies and more than 30% of liquefied natural gas pass through the Strait of Hormuz, so any disruptions can have a significant impact on the global energy market.

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