European gas prices plummet ahead of Trump-Putin summit - Bloomberg

Futures for gas traded in Amsterdam have fallen about 10% since the beginning of the month, reaching their lowest level since May.

Although few traders foresee an inevitable return of Russian pipeline gas to Europe, even if a ceasefire in Ukraine is agreed, any tightening or easing of sanctions on Russian energy could have significant consequences for global supply.

European gas prices are still higher than they were before the energy crisis that began more than three years ago following Russia’s invasion of Ukraine.

Currently, most of Europe’s gas comes from distant countries such as the US and Qatar, with Russian supplies last year accounting for less than one-fifth. At the same time, Europe competes with major buyers in Asia for these supplies.

If Russian liquefied gas projects, some of which are currently under US sanctions, resume operations, it could increase global supply and ease access to gas for buyers.

Claudio Steuer, Senior research fellow at the Oxford Institute for Energy Studies, believes that the extent of any easing of energy sanctions will depend on the scale of a Putin-led ceasefire and credible commitments to reconstruction in Ukraine’s non-occupied territory.

EU aims to ban gas imports from Russia

Earlier this summer, the European Commission announced its intention to propose a ban on Russian gas and liquefied natural gas imports to the EU by the end of 2027.

In particular, Putin’s European ally, Hungarian Prime Minister Viktor Orbán, has repeatedly stated that he would block a ban on Russian gas.

At the same time, Slovak Prime Minister Robert Fico also opposes the ban. Slovakia has received payments from Moscow for years for the transit of gas to the EU.

However, the European Commission believes it can use legal measures to prevent this plan from being blocked by Hungary and Slovakia.

Last month, Reuters reported that the EU may accelerate its phase-out of Russian gas.