Ukraine crisis raises concerns over energy supplies and higher energy prices in Europe - EUROFER

64 heads of the European metals industry sent an open letter to the heads of state and government a week before their spring meeting in Brussels. Heads of state and government were called upon to restore the balance between energy supply and political ambition in order to maintain the competitiveness of industries.

Growing uncertainty in Ukraine has shown once again the strong correlation between security of supply and higher energy prices in Europe. Gazprom of Russia delivered a record 162 billion cubic meters of gas to the European Union and Turkey in 2013, of which 86 billion cubic meters were supplied via Ukraine. Gazprom issued a warning that it could stop gas supplies to Ukraine due to unpaid bills.

Central Europe fears that it could be threatened again by escalating tensions between Russia and the West over the situation in Crimea. In addition, natural gas from other sources will not enter European markets until 2016, and thus there is no way to provide an alternative in the current Ukrainian crisis.
Energy efficiency and renewables are part of Europe's energy mix and part of the solution, but not enough.

The steel industry is skeptical about alternative, domestic European resources such as shale gas, as Europe's population density and legislative infrastructure are very different from the United States. However, there is no alternative but to start developing shale gas as soon as possible, which will partially replenish energy in Europe.