The impact of the war in Ukraine on euro area energy markets

Jakob Adolfsen, Friderike Kuik, Tobias Schuler and Eliza Lis

Economic Bulletin Boxes, 2022, vol. 4

Abstract: This box provides an overview of the impact that the war in Ukraine has had on euro area energy markets. Energy commodity and electricity prices spiked in the immediate aftermath of Russia’s invasion of Ukraine and have been highly volatile ever since. Russia supplies a considerable amount of energy to the euro area, particularly gas. The European Union introduced economic sanctions targeting the Russian energy industry, most notably the coal and oil sectors, while steps are also being taken towards becoming independent of Russian gas. After the initial price spikes, energy commodity prices moderated, owing partly to the EU’s sanctions and also helped by other policy initiatives such as historically large releases of strategic oil reserves. Higher energy commodity prices intensified the pressure on euro area consumer prices in February and March 2022, while some of this pressure was alleviated in April and May as a result of government measures. JEL Classification: Q43, E31, Q02, N44

Keywords: Coal.; Energy; Gas; Inflation; Oil; Russia; War in Ukraine (search for similar items in EconPapers)
Date: 2022-06
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