The study examines the impact of the Russia–Ukraine war on energy prices across OECD countries, highlighting how geopolitical instability has driven up costs, particularly in Europe. The findings indicate that energy prices in OECD countries increased by 9% due to the war, with Southern Europe experiencing the highest surge at 22%. In contrast, non-EU and non-NATO countries saw little to no effect, suggesting that geopolitical alliances played a role in determining the extent of price fluctuations.
The war disrupted global energy supply chains, particularly affecting nations heavily dependent on Russian exports. Sanctions and embargoes reduced the availability of Russian fossil fuels, forcing European countries to seek alternative suppliers at higher costs. The study also suggests that uncertainty and geopolitical risks further fueled demand, as markets responded to the possibility of prolonged instability. Additionally, the rerouting of Russian energy exports to alternative markets, including India and African nations, led to higher transaction costs, further exacerbating price increases.
The study concludes that the war has had a lasting impact on global energy markets, particularly in Europe, and underscores the importance of reassessing energy dependence on Russia. The findings suggest that continued geopolitical instability could sustain elevated energy prices in the foreseeable future. Looking ahead, the global energy transition will likely accelerate, with increased investment in low-carbon technologies such as hydrogen and photovoltaic energy. Policymakers and investors are encouraged to prioritize infrastructure that supports the long-term shift toward cleaner energy sources, reinforcing the general movement toward energy security and sustainability.
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