Russian invasion of Ukraine fuels crisis in energy sector

Sanctions and spiking electricity and gas prices present new challenges for Europe’s utilities

The EU has proposed further restrictive measures on Russia following its invasion of Ukraine, which will affect the financial, transport and energy sectors. EU sanctions currently cover Russian banks Bank Rossiya, Promsvyazbank and VEB, all 351 members of the State Duma who voted in favour of military action and 27 further individuals and entities. For Europe’s utilities, sanctions and wider market volatility may mean a significant shift in procurement strategies for nuclear and gas-fired power plants. Finnish energy company Fortum has “long business ties and broad operations in Russia”, the company notes in a press statement. It says that, since energy production in Russia has not yet been