LONDON (Telegraph) - Wholesale gas prices have surged as tensions grow over a Russian troop buildup at the Ukrainian border.
Natural gas prices hit €115 per megawatt hour in Europe, their highest level since early October, while UK prices rose 12pc above 300p a therm.
It underlines concerns that the diplomatic crisis could have implications for gas supplies.
There is pressure on Germany to block approval of the Nord Stream 2 pipeline from Russia if President Putin invades Ukraine, with U.S. President Joe Biden threatening the Kremlin with punishing economic sanctions if that happens.
Putin has been pushing for the pipeline to be approved, but Germany’s foreign minister reiterated that the project does not yet meet EU rules.
Separately, the EU’s top diplomat, Josep Borrell, said that the bloc is in “deterrent mode” ahead of a meeting of foreign ministers.