The Russian invasion in Ukraine also impacts our daily life. The prices of energy are rising, those of wheat and therefore of bread too. On the other hand, our exports to Russia will fall. The stock exchanges are not at their best either, the markets being totally disoriented. What consequences does the war have on our daily life, on prices in stores, on energy or oil?
In 2010, Europe was 25% dependent on Russian gas. Today, it is at 35%. For Adel El Gammal, pprofessor specializing in the geopolitics of energy at the ULB, who was invited on the set of “It’s not every day on Sunday”, Europe “is very dependent on Russian gas”. He even suggests that in the future, there will be “tensions at the level of energy“: “Au globally, we will probably be in a situation where we will no longer be able to meet energy demand”.
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Europe’s dependence on Russian gas
For the specialist,on s’installe permanently or even permanently in an era of high energy prices”. A direct consequence of the Russian invasion in Ukraine and the diplomatic relations between the West and Russia which are deteriorating. “The tensions linked to this war are ready to last a few years”, dear Adel El Gammal.
It is obvious that what is happening today will upset the economic relations between the West and Russia
Europe’s dependence on Russian gas is explained by structural factors, he argues: “With 20 years of delay, we are beginning to engage in an energy transition, which has resulted in structural under-investment in oil and gas infrastructure in the world (extraction, processing, transformation and transport). In addition to that’s the fact that we haven’t accompanied that with a sufficiently rapid rise in renewable energies”, he analyzes.
Oil prices will soar, expert says
And oil? Remember, Russia is the second largest oil power in the world. 26% of oil in Europe comes from Russia. Will it increase too? “Prices will be pushed up. In my opinion, we are not going to return to cheap prices”, says the professor. “What we are experiencing has structurally changed our economic model”adds Bruno Colmant, professor of economics at UCLouvain and ICHEC.
“It is obvious that what is happening today will disrupt the economic relations between the West and Russia, and this, in the long run,” confirms Gerard Seghers, economic and commercial adviser for the Brussels-Capital and Walloon regions at the Belgian Embassy in Moscow. “There will be an immediate impact which will be quite brutal, but we can expect a real revolution in the way business is done in Russia. There is also a strong concern in the Belgian business world for those who do business here, in Russia”, he concludes.