I don't like Putin but cannot blame him for this crisis

November 6, 2021

Crazy prices

Gas prices in Europe have risen almost sixfold since early 2020, causing economic, social, and political turmoil. Prices for utilities are up, electricity tariffs are growing, and producers of nitrogen fertilizers are shutting down. Gas prices have been going up since mid-summer—it is impossible to find a clear answer to the reasons for this. Someone blames the rapid economic recovery and a sharp increase in gas demand. Some say that energy markets are inherently volatile, and such price fluctuations are acceptable. Someone blames the Russian Gazprom, which has cut gas supplies to Europe. But the experts have not yet succeeded in formulating a common position.   

I am not an expert on the gas market and will not try to answer this question. But I understand pretty well how Gazprom works in the European market and what motives may guide it. Therefore, I decided to figure out whether Gazprom was responsible for what has happened and what actions (or inaction) could have contributed to the crisis.