How Does Ukraine War Affect Energy Prices
The Ukraine war has sustained global energy prices at elevated levels since 2022 by disrupting supply from Russia and Ukraine, two major energy producers.
With Russia spending an estimated $200 billion on military operations in 2026, Moscow continues strikes on Ukrainian infrastructure including energy facilities, limiting regional supply and keeping international markets volatile.
Read the full reportShow less
How the Ukraine War Affects Energy Prices
Supply Disruption
Russian missile and strike operations target Ukrainian energy generation and transmission networks. These attacks have destroyed thermal plants and damaged grid capacity, reducing Ukraine's export potential and forcing Western Europe to seek alternative suppliers at premium prices.
Geopolitical Risk Premium
The conflict maintains uncertainty in global energy markets. Ongoing Russian military escalation, with signals tracking 84 distinct Russia related developments against 76 Ukrainian signals, keeps investors hedged for potential supply shocks. This risk premium has prevented oil and gas prices from returning to pre war levels despite global demand softening.