Some European enterprises have begun to close due to the lack of “cheap” Russian energy on the market, The Wall Street Journal reported.
It is noted that a number of factories cannot withstand competition on the world market with Middle Eastern and American companies, since fuel prices for them are much lower than for consumers from Europe. The publication writes that European gas prices are three times higher than in the United States.
Enterprises are looking for alternatives to Russian energy carriers, fearing the termination of supplies. However, the industry could be at a long-term competitive disadvantage due to the phase-out of oil and gas from Russia if it cannot quickly adopt technologies that reduce fossil fuel consumption. The WSJ points out that this process requires a significant investment.
Earlier, German Chancellor Olaf Scholz said that the country faced practical problems in refusing Russian energy carriers. We are talking about an oil refinery in Schwedt, which previously used Russian oil as a raw material and provided fuel for most of East Germany, including the capital’s airport. The government of the country cannot yet ensure the operation of the plant without supplies from Russia, the politician stressed.