Why Read: This week’s issue dives into the European gas crisis. With Russian supply cut off, a massive recession could be in store across Europe. Recession will be far more muted and less economically damaging if Europe can make up most of the difference.
Of all the ripple effects of Russia’s February reinvasion of Ukraine, one of the most important to business and the global economy has been the disruption to energy markets.
Most SNS members have likely tracked the international sanctions, Putin’s move to cut off European gas, and India’s and China’s massive buyups of below-market fossils to take advantage of the moment. So, too, have we all seen countless headlines about price-cap attempts and government squabbling – and the unavoidable continuation of the European energy crisis coming down the pike for consumers this winter.
In actuality, for anyone either living in Europe or investing or doing business there, the crisis may not, after all, be unavoidable.
This week we will review where the continent stands now, how much power and gas it will need, how much it has lost, and how the difference can be made up.
As with every crisis, risk and opportunity abound. Failure would have massive consequences for the European economy and citizens, while softening the blow would be both good for the world and, potentially, great for business.
