The fallout from Russia invading Ukraine along with the countless sanctions imposed by Western nations is expected to be felt in fuel bills. Overnight on Tuesday, Russian President Vladimir Putin ordered troops into two Russia-backed separatist areas in eastern Ukraine, after earlier recognising their independence from Ukraine.
This sparked fears the invasion had begun after Russian tanks were seen rolling into the areas on a “peacekeeping mission”.
Western leaders responded with waves of sanctions on Russia, including German Chancellor Olaf Scholz halting the Nord Stream 2 gas pipeline project, deepening the crisis.
Deputy Governor Sir Dave Ramsden revealed the recent spike in energy prices was not predicted.
He told The Telegraph: “We did not foresee the recent rise in energy prices, and as we meet today the crisis in Ukraine is intensifying.”
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However, Chancellor Scholz said Russia’s actions were a “serious breach of international law”.
Dmitry Medvedev, Russia’s former president and now deputy chairman of its Security Council, stressed the significant fallout the move would cause and even claimed halting the project could cause gas prices to more than double.
He tweeted: “Welcome to the brave new world where Europeans are very soon going to pay €2,000 for 1,000 cubic metres of natural gas!”
However, experts do not predict such a drastic spike in prices, many see nations paying more for gas.
Nathan Piper, head of oil and gas research at Investec, told the Telegraph: “We’re almost through the winter, we’ve had a mild winter temperature-wise.
“So the gas prices will begin to, relatively speaking, moderate.
“But I think any risk around delivery of gas from Russia is going to lead to higher prices.”