The Russia/Ukraine War And Its Implications For The Energy Markets

The Russia/Ukraine War And Its Implications For The Energy Markets

Share to Linkedin How is the Russia/Ukraine war changing global energy markets? The Russia/Ukraine war has huge implications for energy markets, particularly energy policy and corporate strategies. How will the Russia/Ukraine war change the geopolitical landscape? There will be seismic consequences however the war plays out. Before 26 February, geopolitics and global trade were about 'the West' versus China; now it's the West versus Russia and China. Moreover, Russia's goal to limit NATO expansion has backfired spectacularly, with Sweden and Finland now preparing to join NATO. President Emmanuel Macron's re-election in France on Sunday is another boost to solidarity both for NATO and Europe. It's a profound shift. Europe will never rely on Russia for anything again, and energy is front and centre of the loss of trust. And what about energy policy? Policymakers have to balance the energy trilemma: sustainability, security and affordability. Energy security has jumped to the top of the agenda. European economies want to lessen their dependence on imported fuels. Countries with domestic oil and gas production will maximize the extraction of molecules; the UK's post-invasion pivot on the North Sea is just one example. Sustainability can also boost energy security, though it will take time.