The European natural gas market reacted with a slight decline following statements from U.S. President Donald Trump, who threatened to impose “severe tariffs” of around 100% on countries that continue purchasing Russian energy — primarily India and China — if no agreement to end the war in Ukraine is reached within 50 days. According to Bloomberg, in response to this news, futures on the Dutch TTF hub — the main benchmark for European gas prices — dropped by 1.1%, to €35.07 per megawatt-hour.
The market remains relatively calm for now, as traders believe the 50-day deadline set by Trump reduces the risk of immediate consequences for supply flows. However, the very prospect of secondary sanctions or export tariffs on buyers of Russian gas could significantly alter global energy routes. If implemented, these measures could seriously complicate the EU’s efforts to refill gas storage ahead of winter, especially after inventories fell to a three-year low last season.
At the same time, demand for liquefied natural gas (LNG) is rising in Asia due to extreme heat, intensifying competition for available fuel volumes. According to BloombergNEF, LNG imports in China and Taiwan increased last week, while deliveries to Northwestern Europe slightly declined — though they remain above last year’s levels. Under these conditions, the potential tightening of sanctions on Russian supply may sharply intensify the global race for energy resources.
According to Bloomberg, Trump’s statement signals a renewed phase of geoeconomic pressure on Russia. Even if the threat is not enacted, the mere fact that it has been voiced is already influencing the strategic decisions of importing nations and European energy stakeholders.
This article was prepared based on materials published by Bloomberg. The author does not claim authorship of the original text but presents their interpretation of the content for informational purposes.
The original article can be found at the following link: Bloomberg.
All rights to the original text belong to Bloomberg.
