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Ukrainian Attack on Russia’s Kursk Region Sends European Gas Prices Soaring

Ukrainian Attack on Russia’s Kursk Region Sends European Gas Prices Soaring
  • PublishedAugust 8, 2024

Following a Ukrainian attack on Russia’s Kursk region, European gas prices surged by 5.8%, according to trading data from the ICE exchange, Bloomberg reports.

This spike comes after gas prices reached their highest point since December 2023, exceeding $435 per cubic meter.

Europe’s gas market has been volatile this summer as hot weather in parts of Asia and Europe has lifted demand and intensified competition for cargoes amid supply issues elsewhere globally. Gas futures are up about 40% since the start of April.

While a gas transit agreement to move Russian gas via Ukraine expires at the end of the year, a sudden and earlier halt in flows would still come as a shock because some central European nations depend on that supply.

The August 6 attack involved Ukrainian forces attempting to breach the border with Russia with tanks and armored vehicles. The shelling and drone attacks resulted in three deaths and 24 people injured, including six children. Overnight, four more drones were shot down.

In response, Russia declared a state of emergency in the Kursk region on August 7, as its military continued to repel cross-border incursions. Ukrainian officials have not commented on the operation, but have announced a mandatory evacuation of thousands of people in a border region facing Kursk.