Energy prices in Germany drop below pre-2022 invasion levels

Energy prices in Germany have fallen below levels recorded prior to Russia"s full-scale invasion of Ukraine in 2022. In contrast, domestic energy prices in Russia have been increasing steadily, rising by 10 to 15 percent each year since 2022.

The increase in Russian energy prices is attributed to the loss of revenue from gas supplies to Europe after Russia cut off these exports. Gazprom, the state-controlled gas company, previously relied on European markets as a significant source of foreign income to subsidize energy costs for Russian consumers. With the cessation of gas exports, this financial support has diminished, resulting in higher energy costs for ordinary Russians.

For further information on related developments, see our previous reports on the geopolitical implications of energy supply disruptions.