Natural Gas Prices Soar In Europe:

European NatGas Prices Soar As Moscow Tightens Screw On Supplies Via Nord Stream

TYLER DURDEN

News that Russia's energy giant Gazprom PJSC halted Nord Stream 1 pipeline flows to Europe sent natural gas prices soaring. European governments are preparing for a worsening energy crisis and the increasing probability of rationing.

Europe's politicians are now rushing to pass additional emergency measures: Sweden and Finland will support struggling utilities with collateral requirements, a move to prevent a "Lehman-style" bust. Energy ministers from across the bloc will hold a meeting at the end of the week to discuss NatGas price caps and a suspension of power derivatives trading.

Moscow's move will spark continued energy hyperinflation across Europe that will pressure households deeper into energy poverty -- triggering even more discontent. Tens of thousands of Czechs protested in Prague this past weekend against European sanctions on Russia that have backfired, resulting in a cost-of-living crisis for ordinary people. 

"Obviously, life is getting worse for people, businessmen, and companies in Europe," said Dmitry Peskov, President Vladimir Putin's spokesman. He added, "Of course, ordinary people in these countries will have more and more questions for their leaders." 

Peskov's comments are the starkest yet by the Kremlin that the EU must roll back sanctions in exchange for Russian NatGas, or it's going to be a very tough winter for the energy-stricken continent. 

And the deputy chair of Russia's security council, Dmitry Medvedev, said Berlin was "acting as an enemy of Russia" by supporting sanctions against Moscow and arming Ukrainians. "They have declared hybrid war against Russia ... this old man acts surprised that the Germans have some little problems with gas," he said. 

Even though the EU has been rapidly building up NatGas stockpiles, those reserves could be drained during the heating season in a matter of months.