Vladimir Putin: Soaring Energy Prices the Result of Wind Farm Shortcomings, Not Lack of Gas Supplies

Astronomically skyrocketing gas prices across Europe are the result of an over-reliance on wind energy rather than a shortfall in gas supplies, argued Russian President Vladimir Putin.

During his keynote address at the Russian Energy Week on Wednesday, Putin explained that soaring electricity prices are the result of a shortfall in wind energy generation, and Europe’s over-reliance on wind farms. “The rise in gas prices in Europe was the result of a shortage of electricity, and not vice versa,” he said, adding that the surge in prices have caused the demand for natural gas to also accelerate to record-highs.

The Russian president then accused Western governments of “trying to cover up their own mistakes,” referring to claims that the out-of-control natural gas prices are the result of Russia withholding supplies. “proper analysis of the situation is often replaced by empty political slogans.” he continued.

According to Putin, a longer-than-expected cold snap last winter season caused Europe’s energy reserves to substantially fall below normal levels, leading to an abnormally sharp increase in prices. Now, he said, “the invisible hand of the market” has taken over. The president asserted that Russia is not looking to worsen the crisis, because “the high price environment can have negative consequences for everyone, including producers.”

Some European countries have seen their natural gas prices soar by nearly 250% over the past week, as homeowners face imminent astronomical heating bills ahead of the winter season. In September, the president’s spokesperson Dmitry Peskov explained that Russia’s Gazprom has been meeting its obligations, and has not denied any customers of their natural gas deliveries.

Information for this briefing was found via CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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