12 Oct 2022 18:47

Putin: Europe's losses from spot pricing for gas estimated at 300 bln euros this year

MOSCOW. Oct 12 (Interfax) - Europe's losses from spot pricing for gas are estimated at 300 billion euros this year, Russian President Vladimir Putin said at the Russian Energy Week's plenary session.

"According to expert estimates, this year alone, the spot gas pricing mechanism will bring losses to Europe of more than 300 billion euros or about 2% of eurozone GDP," he said.

"This could have been avoided if long-term contracts pegged to oil had been used. The difference between the spot market and prices in long-term contracts is 3-4 times. And who did it? They did it themselves. They imposed this method of trading on us, forced Gazprom to switch partially to the spot market. And now they moan about it. Well, it's their own fault," Putin said.

"It's clear how this problem with prices will be resolved. We went through this with respect to other commodity groups. They just print money and that's it. Money supply in the EU has grown by about a trillion euros in the last year alone. But the problem is that Europe will use this money to scoop up gas (like food) from the world market. Consequently, other countries, primarily developing ones, will have to pay above the odds for these energy resources. The resource that comes to the European market at exorbitant prices stirs up inflation along the chain. This has already reached 10% in the eurozone," Putin said.