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Prices for Russia’s Urals crude exports have hit near 12-month highs vs regional benchmarks in response to fears of escalation on the border with Ukraine. Europe is heavily reliant on direct imports via the Druzhba pipeline. For gas, the crisis comes amid controversy over Russia’s plans for a new Baltic supply route, Nord Stream 2, and supply shortfalls blamed on lack of storage, and disruptions in the North Sea.
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Central European countries have long been trying to reduce dependence on Russian oil and gas, building import terminals and pipelines, with several projects still to be completed. Russia has become a major exporter of oil and petroleum products to the US, adding to the complex task facing President Joe Biden in talks with Moscow to ease tensions.
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infographic: energy risks rise in russia standoff with us and eu over ukraine – s&p global
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