CHART: Here's Where Russian Gas Goes
Tensions between Russia and Ukraine have have capture the attention of the world, with global markets jittery after Russian troops entered the Crimea region of Ukraine.
As the conflict intensifies, investors are wondering what further reverberations it might have.
And, because Russia is a major energy exporter to Europe, an armed conflict may jolt the EU, according to Citi economists.
"<span style="line-height: 1.5em;">Should a trade embargo (or worse) occur, the volatility of oil and gas prices, and of energy prices in general, will increase markedly," they write. From the note:</span>
<p style="padding-left: 30px;"><span style="line-height: 1.5em;">The global oil market continues to be more integrated than the global gas market, which remains regionally segmented because of the limited reach of pipelines and limited gas liquefaction, shipping and de-liquefaction capacity. </span><span style="line-height: 1.5em;">Finding alternative sources of supply and alternative markets will be harder for gas than for oil, so gas price volatility ought therefore to be greater than oil price volatility. Because a trade embargo would likely reduce the effective supply for oil and gas more than the effective demand in the short run, this increased volatility should be around a significantly higher level of oil, gas and electricity prices.</span>
<span style="line-height: 1.5em;">Sky News' Ed Conway tweeted this chart putting Russian gas exports in perspective. Other than Ukraine of course, Germany and Turkey may get hurt if the conflict continues.</span>
<img src="http://static4.businessinsider.com/image/53149af6ecad04bc4b7dc70e-829-625/bhztxf8cuaae51l.jpeg" border="0" alt="russian gas" />
<b>See Also:</b>
<ul><li>Citi Lays Out The Biggest Risk On The Ukraine-Russia Border Right Now</li><li>Citi Massively Cuts Its Growth Forecast For Russia Thanks To The Ukraine Crisis</li><li>A NYT Op-Ed On How Terrible London Is Has Prompted A Major Backlash</li></ul>
SEE ALSO: Wall Street's Take On Ukraine