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Gazprom Germania headquarters: The federal government has nationalized the supplier © REUTERS

European gas prices rose to over 100 euros per megawatt-hour on Thursday as new uncertainties over the flow of gas from Russia to Europe surfaced.

The concerns reflected Moscow’s imposition of sanctions on key gas companies that Berlin has taken control of and the disruption of a gas pipeline through Ukraine.

Futures contracts linked to TTF, Europe’s wholesale gas price benchmark, rose more than 12 percent to €106 per megawatt-hour, up from about €90 per megawatt-hour earlier in the week as the continent’s Russian gas supply fell under a string of new ones threats.

Late Wednesday, the Kremlin imposed sanctions on Gazprom Germania, a group of companies formerly owned by Russia’s state gas company Gazprom, which Berlin acquired last month. The new legislation prevents Russian companies from selling gas or doing business with a number of Gazprom Germania companies.

Astora, one of its subsidiaries, is one of the largest owners of underground gas storage facilities in Germany, and Wingas, WIEH and WIEE, also subject to Moscow’s sanctions, are gas distributors in Germany that do big deals with Gazprom.

The federal government has yet to outline what effects the sanctions could have on the gas supply. Andrei Belyi, a gas consultant at Estonia-based Balesene, said the Russian state has “increased the level of uncertainty for European buyers and consumers”.

That came after the Ukrainian pipeline operator shut off gas flow through one of the two major pipelines that bring Russian gas through the country to Europe a day earlier.

Gas traders have focused for weeks on a new ruble payment mechanism that Russia has been demanding has resulted in Poland and Bulgaria being cut off from Russian gas. The dispute could flare up again later in May as payments from more European buyers come due.

Due to the uncertainty about Russian gas deliveries, the prices for German electricity in the coming year reached their high for the year to date at EUR 227.75 per megawatt hour, according to Refinitiv on Thursday. Electricity prices tend to follow higher gas prices.

Line chart of traders worried about flows from Russia to Europe shows jumps in European gas prices

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