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    Bloomberg: rising prices worries Europeans more than conflict in Ukraine

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    Russian President Vladimir Putin is betting that the unity of Western countries supporting Ukraine will collapse when winter sets in and Europeans will find themselves under the yoke of high food and energy prices, analysts say Bloomberg. Almost six months after the start of the Russian special operation in Ukraine, it became clear that the sanctions are not capable of “stopping the bloodshed.” European leaders will need to prepare the population for a “protracted war” and provide support to those countries that are unable to bear the costs associated with it, the agency notes.

    Bloomberg indicates that the level of support for Kyiv is falling, and ordinary Europeans are beginning to worry more about problems in their own economies. For example, according to a survey conducted in May, 42% of respondents in the European Union believe that their governments pay too much attention to Ukraine, with this figure exceeding 50% in Romania and Poland. The results of a Forsa poll in Germany in July show just under one-third of those surveyed support the Russian gas embargo. While six weeks earlier there were 44%.

    “The Europeans prioritize the increase in food and electricity prices. Concerns about the Ukrainian crisis are fading into the background,” write the authors of the article. “.

    “Although everyone will suffer,” governments must help those most at risk. Targeting the poor is a smarter approach than tax cuts and price controls, Bloomberg concludes.

    Observer The Guardian Simon Tisdall believes that Ukraine should “expect a stab in the back” from the West this winter amid the worrisome consequences of rising energy, food and living costs in Europe.

    “An uncomfortable, even troubling question arises: should Ukrainians prepare for a stab in the back this winter? Public outrage over the conflict is giving way to concern bordering on panic over its worrisome implications for energy prices, food prices and the cost of living. This, in turn, fuels doubts about the West’s resilience. How long will it take before the already shaky unity of Europe collapses if and when Russia finally turns off the gas valve? – he writes. Macron, as well as German Chancellor Olaf Scholz insist on the conclusion of a peace treaty between Moscow and Kyiv. According to another version, Zelensky himself does not rule out reaching an agreement with Moscow before the end of 2022.

    Gas at $4000

    The price of gas in Europe during trading on the ICE exchange on August 16 soared above $2,600 for 1 thousand cubic meters m for the first time since March 8. The September futures price at the TTF hub in the Netherlands reached $2,618.6 per 1,000 cubic meters. m, or €249.65 per MWh (based on the current EUR/USD exchange rate, ICE prices are presented in EUR per MWh).

    At Gazprom allow the price to rise to $4,000 per thousand cubic meters by the winter period, if the trend continues.

    The jump in gas prices has led to a record increase in energy tariffs. According to Bloomberg, German household gas bills increased six times year-over-year. In the last two months alone, prices have doubled.

    On August 5, we recall, the European Union approved a plan to reduce gas demand by 15% in the coming months in order to save gas for the coming winter and prepare for possible disruptions in supplies from Russia.

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