What Russia needs most is cash for bombs

An interview with Piotr Woźniak, former president of Polskie Górnictwo Naftowe i Gazownictwo (PGNiG), Poland’s largest gas company. Interviewer: Mykola Voytiv

MYKOLA VOYTIV: If we look at prices and the war, what do you think awaits the European gas market?

PIOTR WOŹNIAK: The sharp rise in natural gas prices was caused by increased demand from the European Union in November and December 2021 – Russia expected this and prepared by not pumping natural gas into underground gas storages in the Netherlands, Austria and Germany. Russia’s aggression in Ukraine only intensified this dynamic. Keep in mind, that natural gas prices are a relative concept. Whilst some are fixed in bilateral contracts for gas supply, such as Russian natural gas, natural gas from the Norwegian continental shelf, or LNG, others are priced in line with European energy exchanges and hubs.