Gas prices in Europe have quadrupled from early this year amid declining flows, with Russia being Europe's primary source of natural gas.
Russia’s Cuts in Gas Supply to Europe - The Result of Sanctions
The largest Russian company said via Telegram, "European spot gas prices have reached $2,500. According to conservative estimates, if such a tendency persists, prices will exceed $4,000 per thousand cubic meters this winter."
Claiming to supply gas "in accordance with confirmed requests," Gazprom reported that between January 1 and August 15, the company's gas exports to countries outside the former Soviet Union had seen a 36.2 percent reduction, with production down 13.2 percent.
Sanctions concerning the ongoing Ukraine along and technical problems this year have triggered such action in Gazprom's exports to Europe.
The London Stock Exchange ICE reported Tuesday that, for the first time since March, the cost of gas futures at the title transfer facility (TTF) in the Netherlands rose above 2 600 dollars per thousand cubic meters, up 13 percent from the previous day's liquidation.
In this scenario, Gazprom's flows through the Power of Siberia pipeline exceed the contracted daily quantities on a regular basis.
This increase in Gazprom's shipments to Asia implies a 60.9 percent increase in gas supplies to China between January and July compared to the same period last year.