Europe has relied on Russian energy since the invasion of Ukraine. But that will change later this year when Russia faces a price cap on crude oil exports.
That revenue stream would go down significantly once the price cap takes effect, cutting into Russia's overall budget and making it harder for Moscow to sustain its current level of military spending.
Russia kept a steady supply of natural gas going to Europe in the first half of the year, giving Europe time to boost its storage capacity ahead of the winter and easing fears of a heating shortage.In late August, the Russian energy giant Gazprom temporarily shut down Nord Stream 1, the largest natural gas pipeline from Russia to Europe, citing maintenance issues. Three days later the energy company announced it was extending the shutdown indefinitely.
In the aftermath of the attacks, natural gas has continued flowing from Russia to Hungary and a handful of other landlocked Central European countries through other pipelines. But the rest of the continent has largely had to make do without it. "There have been a lot of emerging economies that have been very clear that they're happy to buy Russian oil at a discount if they can get it," said Mark Finley, an energy fellow at the Baker Institute.
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