Analysis: Cutting off natural gas supply Russia and Europe will lose both defeats

(London Composite Electric) analysis pointed out that if Russia really cuts off the natural gas supply to European countries, it will cause Russia and Europe to lose both.

Reuters reports that Russia's natural gas exported to Europe last year accounted for more than one -third of the total natural gas supply.Without Russia's supply, Europe has to buy more natural gas in the spot market, and the price of natural gas is five times higher than last year.

Germany and Austria are seriously dependent on Russia's natural gas. The two countries have launched emergency plans to include distribution when necessary. Other European countries have also developed their own response plans.

Russia will lose a large source of income.Polway, an analyst at Moscow's investment institution Locko Invest, said: "Buyers are unwilling to comply with (Russian President Putin) requirements, which may lead to suspension of supply. Buyers and Russian natural gas industry companies will suffer." How to deal with Russia to deal with natural gas originally supplied to Europe is also a problem.Matvito, Speaker of the House of Russian House of Russian Parliament, said last week that Moscow may shift its supply to the Asian market.However, the analysis pointed out that there is no pipeline that allows Russia to transport natural gas to Asia, not to mention that Asian countries may not be willing to buy more natural gas from Russia.

Because Moscow has no other natural gas alternative market, Russia's natural gas pipes are only exported to Europe.This is also destined to have limited space for Putin.

A natural gas trader in Europe said: "If Putin shuts down natural gas, it may only maintain a relatively short period of time. Putin needs our money to change the route of all natural gas."

Putin announced last week that foreign buyers will pay for the purchase of Russian natural gas from the ruble payment from April 1, otherwise the contract will be suspended.This announcement has supported the decline in the decline in the past few days.Russia's Natural Gas Industry Corporation said on Friday that it has begun to notify customers to convert the final payment currency into rubles.According to analysis, European buyers are still preparing to purchase natural gas based on existing contracts, and they also seek to clarify Putin's requirements from Russia.