Russia Expects Gas Prices to Rise in 2022

Russian Deputy Prime Minister Alexander Novak said Friday, December 24, that he expects relatively high gas prices next year, according to the Interfax news agency.

Europe relies on Russia to provide about 35% of its natural gas needs, the price of which has risen to an all-time high on the spot market this winter.

Gas prices in Europe have risen by 570% since the beginning of 2021, according to the Dutch TTF Europe benchmark.

Russian President Vladimir Putin said yesterday that it was unfair to accuse Russia of being responsible for the rise in natural gas prices to record levels in Europe, in light of the Russian company Gazprom fulfilling all its supply commitments.

Putin told an annual press conference that Gazprom had to fulfill all its obligations under long-term agreements before supplying to spot markets, adding that countries that had long-term contracts, such as Germany, now have much lower prices and can even resell gas to their neighbors and make a profit.