Trading Network in Russia Gas Supply
Russia argues that the West’s punishing economic sanctions are to blame for the indefinite halt to gas deliveries via Europe’s main pipeline. This claim is made in the article “Russia has turned off gas supplies to Europe indefinitely.” The penalties stop companies from moving without the necessary legal protections, from maintaining their premises, etc. According to Russia, gas shipments to Europe will start up again as soon as Europe lifts its economic sanctions on Moscow. This has increased the possibility of a European recession and caused a spike in petrol costs. Russia has recently severely cut back on its gas shipments to Europe and has stopped supplying Germany, the EU’s largest economy and primary gas consumer. In preparation for the upcoming winter, Germany assumes that Russia will not provide any energy. To keep households warm during the colder months, European politicians are rushing to secure gas supply in subterranean facilities. Power spot costs in Western Europe have risen to “unprecedented levels,” according to Rystad Energy, and Europe may not receive further gas supplies through Nord Stream 1.
Combining the news with the topic of trading markets in networks, the graph above can be constructed. In the original graph with blue lines, Russia has the biggest bargaining power because Russia has the biggest natural gas resource in the world. Russia trades with China and India as well as Europe. So, after Russia suspended power supply to Europe (the pink cross), Europe need to find alternative supply from countries like China and India, which might originally come from Russia, and import natural gas from the USA (the pink lines). This might allow Europe to gain back some bargaining power. The more options Europe gets, the higher bargaining power it will obtain which will ultimately help Europe gain back some initiatives.
https://www.cnbc.com/2022/09/06/energy-crisis-why-has-russia-cut-off-gas-supplies-to-europe.html