Fears that energy and food prices could rise due to Ukraine crisis – TheLiberal.ie – Our News, Your Views

Fears that energy and food prices could rise due to Ukraine crisis

A major gas pipeline between Russia and Europe has been disrupted, causing gas prices to skyrocket and UK household bills are feared to soar.

Germany made the decision to no longer approve the Nord Stream 2 pipeline in response to the Russian crackdown in Ukraine.

The move was the first major move by a world leader to impose sanctions on Russia after President Vladimir Putin ordered troops to be sent to breakaway regions of Ukraine.

While the sanctions are meant to hurt Russia, the measures, coupled with uncertainty about the situation in Eastern Europe, could also benefit British households.

Europe relies on Russia for vast amounts of oil, gas and wheat, and experts have warned that a conflict could lead to rising energy prices and disruption to shipping lanes.

The shutdown of Nord Stream 2 sent European benchmark petrol prices up 13% yesterday, while the UK equivalent jumped 8%.

US crude oil prices rose 1.4% after rising more than 3% previously and energy markets remained volatile following rising natural gas prices in Europe.

European stock markets, particularly sensitive to events in Russia and Ukraine, also closed lower.

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