Energo: Russian attacks on Ukraine double electricity prices in Eastern Europe

Electricity prices in southeastern Europe have surged by 100% this summer due to Russia's strikes on Ukraine's energy infrastructure, according to a report by the Financial Times. The increase, driven by power outages, hot weather and low rainfall, has affected countries such as Greece, Hungary and Romania.

In a letter to the European Commission, Greek Prime Minister Kyriakos Mitsotakis highlighted that electricity prices rose in August from €60 per MWh to €130 per MWh. He noted that Russia's ongoing attacks on Ukraine's energy grid were a key contributing factor, exacerbating local conditions and pushing up prices.

"Ukraine, once a net exporter of electricity, has been forced to import significant amounts of energy from its EU neighbours," Mitsotakis said. In the first half of 2024, Ukraine's electricity imports increased by nearly 500% compared to 2023, placing additional strain on the region’s power supply.

"This is another price that Russia's destructive war imposes on our economies," a Greek government official commented. "We feel there is an energy mini-crisis that no one is talking about."

Eastern Europe’s reliance on hydropower has been undermined by low rainfall, depleting reservoirs that feed critical energy plants, while Russia’s assaults have further destabilised the energy supply chain.