Europe’s energy crisis: the impact on Russia & CEE

The decision by Gazprom to cut natural gas supplies to Europe to 20% of capacity has caused gas prices to surge and raised the risk of energy shortages during the winter. A full gas cut-off would result in self-inflicted pain for Russia. For the rest of the region, were gas to be rationed, that would cause currencies to fall further, industrial production to collapse and push Czechia and Hungary into deeper recessions.