Energy markets one year after the Ukraine invasion

This fact sheet by Zero Carbon Analytics examines the state of energy markets one year after the invasion of Ukraine, detailing the European Union's rapid reduction of Russian gas imports, the acceleration of the global energy transition toward renewables, and the financial impacts of energy sanctions on Russia and high fuel prices on global consumers.

• The European Union significantly reduced its reliance on Russian gas by November 2022, substituting nearly 75% of imports compared to pre-crisis levels. This was achieved through a combination of existing infrastructure and a reduction in gas demand, which fell by more than 10% in the first nine months of 2022 compared to 2021. Furthermore, new LNG capacity under development in the EU could provide 65% more gas than Russia supplied in late 2022.
• The energy crisis has accelerated the global transition to renewables. Global gas demand is now forecast to peak by the end of the decade based on current policies, and 88% of electricity generation growth up to 2025 is expected to be met by renewables, with fossil fuels accounting for only 1%. In the EU, wind and solar generated a record 22% of electricity in 2022, surpassing fossil gas (20%) and coal (16%) for the first time.
• High fossil fuel prices in 2022 drove global electricity costs up, with gas and coal accounting for 90% of the increase. The EU spent EUR 252 billion on gas imports in the first nine months of 2022, a 286% increase over the previous year. To mitigate these impacts, European governments committed EUR 768 billion to shield consumers since September 2021.
• Western energy sanctions have caused significant financial losses for Russia, with oil product sanctions estimated to cost the country EUR 280 million per day. Russian tax revenue from oil and gas fell 46% between January 2022 and January 2023, contributing to a public deficit of USD 25 billion in January 2023.
• The energy crisis had severe impacts on specific Asian nations. Bangladesh faced LNG prices up to ten times higher than in mid-2020, leading to government subsidies rising to four times 2018 levels and blackouts affecting over 80% of the population. Pakistan experienced multiple LNG delivery cancellations, with 11 cargoes defaulting on contracts in 18 months starting from 2021, resulting in power outages and doubled electricity costs.

APA

Team, Z. (2023). Energy markets one year after the Ukraine invasion. Zero Carbon Analytics. https://zerocarbon-analytics.org/uncategorized/energy-markets-one-year-after-the-ukraine-invasion/

Chicago

Team, ZCA. Energy markets one year after the Ukraine invasion. Zero Carbon Analytics, 2023. https://zerocarbon-analytics.org/uncategorized/energy-markets-one-year-after-the-ukraine-invasion/.

Wikipedia

{{cite report |last1=Team |first1=ZCA |title=Energy markets one year after the Ukraine invasion |publisher=Zero Carbon Analytics |date=23 February 2023 |url=https://zerocarbon-analytics.org/uncategorized/energy-markets-one-year-after-the-ukraine-invasion/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{team2023energy, author = {Team, ZCA}, title = {{Energy markets one year after the Ukraine invasion}}, institution = {Zero Carbon Analytics}, year = {2023}, month = feb, url = {https://zerocarbon-analytics.org/uncategorized/energy-markets-one-year-after-the-ukraine-invasion/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }