Russia Invades Ukraine and Europe Buys More Gas. Here’s Why (1)

In the hours after the invasion of Ukraine, there were calls for Europe to punish Russia by ending energy purchases. But the immediate response of European energy companies was to buy more natural gas, much of it transported through Ukraine’s pipeline network.

For a second day, utilities are ordering more fuel under long-term contracts with Gazprom PJSC because the deals are priced in a way that Russian imports became cheaper than spot gas traded at European hubs.

Current gas prices are “well above the likely sales price for many Gazprom import contracts and so driving purchases higher,” Stefan Ulrich, ...