The energy crisis

Welcome back to the Dispotech blog! This week we will deal with the issue of the energy
crisis, a problem of enormous proportions that is creating distress throughout Europe - and
whose severity, unfortunately, shows no signs of relenting.

Welcome back to the Dispotech blog! This week we will deal with the issue of the energy
crisis, a problem of enormous proportions that is creating unease throughout Europe - and
whose severity, unfortunately, shows no signs of relenting. Let’s have a closer look at this
matter with the aid of an article read on  edition.cnn.com.

The energy crisis that Europe is facing due to tensions with Russia - the result of the
conflict with Ukraine, whose end still seems far off - is very serious and risks getting worse
day by day. Russia, the main producer of gas, has further restricted exports to Europe,
causing hardship to millions of citizens and putting governments, which spend billions of
euros to help companies and individuals, in serious difficulty.

Only a few days ago, the price of gas reached a record high of €274 per megawatt hour,
and the gas industry giant, Gazprom,stopped the flow of gas from the Nord Stream 1
pipeline for an as yet undetermined amount of time. Europe is still too dependent on
Gazprom: last year, 35% of the gas used originated in Russia. Since June, this percentage
has dropped to 20%.

The closure of gas pipelines causes concern as European governments fear they will not
have enough supplies for the winter, despite the fact that efforts have been made to
prevent waste and to stockpile in the event of an emergency.

In Britain, the price of gas rose by more than one-third, while the pound reached its lowest
value since 1985. Britain’s new Prime Minister Liz Truss is feeling the pressure to do
everything possible to help citizens and businesses cope with the rising cost of living
(which will inevitably hit the entire continent). There is talk of a £100 billion plan.
Germany, Europe’s leading economy, will try to help its citizens with an aid package worth
65 billion euros.

One of Europe’s greatest fears is that Russia will definitively cut off gas supplies. This is
already happening to countries considered ‘hostile’ and, in part, to those that refuse to pay
in roubles. The G7 nations are trying to stop capital that might enter Russia and help
finance the war against Ukraine.

European leaders argue that energy and gas supplies should be sufficient to get through
the winter without facing production crises and recession; however, they are well aware
that they need to do more and join forces to support one other.
The energy crisis has created widespread disruptions in the manufacturing sectors in our
country as well, particularly in paper production - the problems of which affect many
products fromDispotech.
To find out more and for further information, contact the Dispotech team.