Home News European businesses face shutdown due to shortage of ‘cheap’ fuel from Russia

European businesses face shutdown due to shortage of ‘cheap’ fuel from Russia

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The Wall Street Journal warns of the challenges that Europe’s manufacturing industries will have to deal with. The journalists of the publication write that for decades many large European plants relied on oil and gas supplies from Russia, fully meeting the needs of the industry.

“While Europe is seeking to wean itself off Russian energy, US natural gas producers are struggling to meet demand and prices are rising,” states The Wall Street Journal.

Now, with the imposition of sanctions and a move to phase out Russian energy supplies, producers are facing intense competition as energy prices in the US, the Middle East and elsewhere are significantly lower than in Europe. Thus, today European gas prices are almost three times higher than in the United States. At the same time, European enterprises are trying to find alternatives to Russian energy carriers, but so far they have not succeeded.

The authors of the publication also predict that the European industry could be at a competitive disadvantage if European enterprises fail to implement technologies that can dramatically reduce the consumption of fossil fuels. At the same time, as the newspaper notes, such technologies, in turn, will require significant investments.

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