Amid ravaging energy crisis, Europe sets cash ablaze to aid businesses

By Tejaswita Tiwari  | Date: 2022-09-22

Amid ravaging energy crisis, Europe sets cash ablaze to aid businesses

As the tensions between Russia and Ukraine continue to escalate, new challenges that ravage communal harmony across Europe remain untethered at present. While the United Kingdom has reportedly capped the wholesale cost of gas and electricity for businesses, Germany recently nationalized gas importer Uniper, to aid in the continuous flow of electricity and water as winter approaches.

Furthermore, by adding insult to injury, Russian President Vladimir Putin announced a partial military mobilization, therefore spiking oil and gas prices alongside issuing a threat to curb global fuel supplies to a greater extent.

For the unversed, European gas and power prices have been peaking for the past few months, as Russia restricted fuel exports, as an aggressive response to Western sanctions over its infiltrative attacks on Ukraine since the onset of the war.

Additionally, Russia’s decisions have thus far gravely affected consumers across Europe who are currently crushed under the mountain of sky-high bills, whereas businesses are grappling with restricted cash inflow.

While several businesses across Britain are coping with augmenting bills, around more than 20 businesses have unfortunately crumbled under pressure because the government cap restricted them from fully registering themselves with the impact of soaring prices.

Elaborating on the economic devastation, Britain's finance minister Kwasi Kwarteng claimed the decision was taken in favor of protecting job roles, limiting inflation, and saving businesses from shutting down.

Furthermore, European gas prices reportedly peaked on Wednesday, immediately following Putin’s announcement, capping at Euros 212 megawatt per hour (MWh), which is a lot higher than the previous year’s prices by nearly 200%.

It is worth noting that, the European Union which previously relied upon Russia for 40% of its gas supplies is currently rallying to identify new suppliers in order to stay afloat at the time of crisis.

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Tejaswita Tiwari

Tejaswita Tiwari Being born in a family of readers, Tejaswita has always had a natural flair for writing, using that enthusiasm to become a full-fledged writer after earning her MBA in Marketing. Her insatiable curiosity to learn about various verticals has made her a popular research writer today, penning down busi...

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