Norway earns big, while Norwegians get higher bills

Instability and insecurity after Russia recognized rebel-held areas in eastern Ukraine on Tuesday led to bombings. located in the stock exchanges in Asia and Europe.

On average, savers lost about four percent of the portfolio, says investment manager Robert Ness at Nordea.

He estimates that this means about 12,000 per saver. However, most people note the economic impact of the Ukraine crisis, first of all as fuel and electricity have become more expensive.

Gas prices to heaven

In recent months, Russia has held back gas from Europe, which means Europeans are paying more for Norwegian exports. Norway and Russia are the two largest gas suppliers to Europe.

As Norway condemns Russia’s violation of international law, money is pouring in.

Næss in Nordea calculated how much Norway would benefit from Russia’s holding of the gas. From October to January, Norway earned $265 billion on gas exports compared to last year.

This corresponds to an additional NOK 60 billion per month, or NOK 2 billion each day, or NOK 1.4 million per minute due to unusually high gas prices.

– If we look only at the economy, those disruptions are good, because we make a lot of gas, says Ness.

It also notes an oil price development that shows Norway has earned an additional NOK 10-20 billion per month this winter.

More expensive electricity and fuel

Although Russia currently bans gas, this could be upside down. Sanctions imposed by European Union countries may restrict Russia’s gas exports and increase Europe’s demand for Norwegian oil and gas.

– It is exciting and directly hits the energy market because Russia is one of the largest suppliers of energy to the European Union, says editor of the energy news agency Montel, Gert of Mollestad.

Tuesday afternoon, it became clear that Germany will not use the disputed Nordstream2, which is the Russian pipeline in the Baltic Sea.

Although limited Russian exports drive up prices, Mollestad also thinks this in and of itself is very beneficial for Norway.

– It’s a money machine from another world. In isolation, it is very good for Norway.

But the “joy” can be short-lived. Regardless of whether Russia withholds gas or is subject to sanctions, limited exports mean a loss of expense for Russia.

Mollestad believes the result could create stability in both markets and Europe.

They lose a lot of money, and it can be a stabilizing factor in the aggregate.

Jens Stoltenberg on the situation in Ukraine: – Everything points to plans for a large-scale invasion

Consequences for most people

Although Norway gains a lot from increased exports, higher gas prices can happen a little differently for Norwegian citizens.

If oil and gas prices remain high over a longer period, commodity prices will increase, according to chief analyst Thena Saltvedt at Nordea.

“It will be more expensive to move and export things around the world, and eventually it will be levied on the goods we buy in the store,” she says.

In addition, increased electricity prices can increase the cost of production. This will make the goods more expensive, according to Saltvedt.

Stock savers may also note that the turmoil surrounding the security situation in Europe is causing stock markets to fall.