France and Germany are facing exorbitant electricity prices due to the unwise sanctions they leveled on Russia. The sanctions hurt them but Russia is selling more gas and oil than ever.
This time last year the cost of electricity per megawatt-hour (MWh) in both France and Germany sat at around 85 euros. On Friday, both countries set record highs, with the cost climbing by at least 1,000 per cent from last year to €850 in Germany and over €1,000 in France, Le Monde reports.
Soaring prices most recently result from slowing flows of gas from Russia. Many thermal power plants using natural gas to generate electricity.
Donald Trump warned them not to rely on Russia for gas and oil.
The demand has given Russian President Putin the advantage in the energy wars meant to crush Russian’s economy.
Sales are booming in Russia’s export market, the world’s largest in crude and refined fuels, the WSJ reports.
Oil revenue more than makes up the difference. “Russia is swimming in cash,” said Elina Ribakova, deputy chief economist at the Institute of International Finance. Moscow earned $97 billion from oil and gas sales through July this year, about $74 billion of that from oil, she said.