Name? Vladimir Putin
Westphalian identity? Russian
Age? 68
Why is he in the news? European costs of electricity are going up by 30% or more and consumers are angry about it. In Britain, gas prices are at £385 ($532), up from £147 a few weeks ago. Who is coming to save European consumers? Vladimir Putin! Putin said today that Russia is boosting gas supplies to Europe to stabilise the market amid surging prices.
Why do we care? Why does Europe suddenly need Putin to stabilise its gas prices? Well, two reasons, first, the wind has not been blowing as much as in previous years (down by 50% in September), taking a hit on renewable energy production. And second, disruptions in the supply of natural gas from Norway and Algeria due to supply chain issues. Some also believe Putin is keeping exports low to speed up the initiation of the operation of Nordstream 2.
Why should you care? Your electricity and energy bills are going to rise and Putin might be the one saving you a few bucks this winter. Given that foreign policy is directly affecting your personal comfort now, you should care 10/10!
Who else cares? China’s President Xi. China has been experiencing energy shortages in 20 of its 31 provinces and is currently buying all available resources in natural liquified gas that Europe wants as well. High coal demand and ongoing tensions with coal-exporter Australia have increased prices. Instead of passing these prices on to Chinese citizens, Xi has decided to shut down industrial complexes leading to a predicted decrease in GDP growth.
Any further comments? Electrifying everything from heating, to steel production and transportation in order to cut carbon emissions leads to a massive increase in energy demand. Renewable energies themselves are not yet able to fulfil needs, increasing the importance of Putin’s gas. Fighting global warming by further electrifying our lives is giving even more legitimacy to his Nordstream 2 project.
