Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Lebanese Ministry of Health: Final toll from airstrike on car in Zebdine, Nabatieh District: Two martyrs, four injured
Egyptian media: Indirect talks between Hamas and Israelis begin in Sharm el-Sheikh.
AFP: France's new PM Sebastein Lecornu resigns just hours after unveiling cabinet.
Trump: Technical teams will meet again on Monday in Egypt to discuss and clarify the final details, and the first phase is scheduled to be completed this week
US President Donald Trump: Talks with Hamas have been very successful and are moving at a rapid pace
Local sources in Aleppo: Violent clashes erupt between the SDF and factions affiliated with the transitional authority on the Deir Hafer and Tishrin Dam fronts in the eastern Aleppo countryside
Israeli media: Interceptor missiles fired in an attempt to shoot down the drone
IOF Spokesperson: Sirens sounded amid suspected "enemy aircraft" infiltrating the Eilat area
Israeli media: "Israel" won the battle but lost the war strategically and politically
Israeli media: Ben Gurion Airport's airspace closed to air traffic following missile launch from Yemen

European market in hardship until energy deficit is figured out

  • By Al Mayadeen English
  • Source: Agencies
  • 13 Sep 2022 10:46
5 Min Read

No more investments in Europe, a US investor warns, as the European economy continues to deteriorate.

  • x
  • European market struggles to figure out energy deficit.
    European market struggles to figure out energy deficit.

The European economy is deteriorating, and the chances for investment in the near term will remain "bombed out" until the region addresses the energy deficit and cost issue, according to Gary Korolev, CEO of the financial services business Sovereign Wealth Management.

"The only positive near-term prospect for investing in Europe right now is that sentiment is so bombed out, the market usually looks for an opportunity for a countertrend rally at a time like this," Korolev said. "Otherwise, the trend is still toward harder times for Europe until they figure out the energy deficit/cost issue."

Read next: Experts warn of social unrest due to war in Ukraine

Korolev emphasized that Europe cannot exist without Russian energy, yet Germany, the region's economic engine, continues to prepare to shut down its nuclear reactors despite huge energy challenges.

"Nuclear is the only way to at least partially alleviate Europe’s energy problems without the use of Russian gas," he said. "There is nowhere near enough compressed natural gas to go around and whatever can be delivered to Europe is at a much higher price than the pre-February 24 prices at which the gas was flowing to Europe through the Russian pipelines."

Korolev went on to add that energy is the lifeblood of the economy and that increasing energy prices will make Europe, which already has relatively high labor expenses, even less competitive in comparison to emerging nations.

Read next: Sanctions had no effect on Moscow yet Europe lost 4 governments: Orban

"This spells trouble for the famous European trade surplus," he said. "It is quite likely that political turmoil due to European electorates being very dissatisfied with high energy bills and high unemployment will filter through to change of heart in most, if not all of the western European administrations. This may take a couple of years, enough for the politicians to save face, but our base case is it has to happen eventually."

Since 2021, European energy and food prices have been rising as part of a global trend, owing in large part to the COVID-19 restrictive policies. Fuel and food costs have risen since the beginning of Moscow's special military campaign in Ukraine and the introduction of sweeping sanctions against Russia by the collective West, forcing several European countries to turn to precautionary measures.

Related News

White House concerned about unfolding domestic terrorism conspiracy

Von der Leyen faces no-confidence vote for 'surrendering Europe' to US

Russia oil price cap deal likely to stand but ineffective: US Investor

The price cap mechanism scheduled to be imposed on Russian oil will likely remain in place but will be ineffective due to a lack of enforcement required by market realities, according to Gary Korolev, CEO of financial services firm Sovereign Wealth Management.

"The deal, like all others, is likely destined to slowly fade into irrelevance," Korolev said.

Korolev pointed out that geopolitics is often more about posturing and showing strength even if the actual strategy has failed, and the collective West is already buying Russian oil on the black/gray market and paying a huge premium for it.

"This new deal will likely officially stand, however, de facto will be toothless due to the many exceptions, loopholes, and lack of official enforcement necessitated by the market realities and the needs of western countries to keep their economies from grinding to a standstill," he said.

Moreover, the US Treasury revealed that buying considerable amounts of Russian oil above the price cap agreed upon or providing fraudulent data or documentation of the transactions may bring about sanctions enforcement. 

"Persons that make significant purchases of oil above the price cap and knowingly rely on service providers subject to the maritime service's policy, or persons that knowingly provide false information, documentation, or attestations to such a service provider, will have potentially violated the maritime services' policy and may be a target for a sanctions enforcement action," the guidance said.

Read next: G7 nations set to agree on Russian oil price cap

Last month, the European Union prepared for emergency action to reform the electricity market and hold the energy prices in its grip, especially since they have soared since the war in Ukraine began, according to senior officials. 

The high gas prices have been followed by disruptions in the nuclear and hydroelectric sectors against the backdrop of a heatwave due to climate change, threatening businesses, and households with bills beyond affordability. 

"The skyrocketing electricity prices are now exposing the limitations of our current electricity market design," said EU Commission president Ursula von der Leyen. 

"It was developed for different circumstances. That's why we are now working on an emergency intervention and a structural reform of the electricity market." 

  • United States
  • Europe
  • Russia
  • Western sanctions
  • European Union

Most Read

Hamas fighters stand in formation ahead of a ceremony to hand over Israeli captives to the Red Cross in Nuseirat, Gaza Strip, Feb. 22, 2025. (AP)

Hamas reviews Trump’s Gaza ceasefire plan as PIJ rejects

  • Palestine
  • 30 Sep 2025
Iraq at a crossroads: A new war front?

Iraq at a crossroads: A new war front?

  • West Asia
  • 30 Sep 2025
A Hamas fighter in combat fatigues stands before the ceremony for the handover of Israeli captives to the Red Cross in Nuseirat, central Gaza Strip, Saturday, February 22, 2025 (AP)

Hamas responds to Trump plan, backs Gaza withdrawal, exchange

  • Politics
  • 3 Oct 2025
Tucker Carlson speaks at a memorial for Charlie Kirk, Sunday, September 21, 2025, at State Farm Stadium in Glendale, Arizona (AP)

Tucker Carlson: Israeli officers gave orders on Iran inside Pentagon

  • Politics
  • 2 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Hezbollah's representative in Iran, Sayyed Abdullah Safieddine, during an interview with Al Mayadeen which aired on October 6, 2025 (Al Mayadeen)
Politics

Tehran never interferes in Hezbollah decisions: Representative in Iran

Smoke billows over the Gaza Strip following an Israeli bombardment, as seen from southern Palestine, Sunday, Oct. 5, 2025. (AP)
Politics

Indirect talks for a ceasefire in Gaza begin in Sharm El-Sheikh: Egypt

Fighters from the Syrian Democratic Forces (SDF) prepare to attend a military parad in Qamishli, northeastern Syria, Tuesday, August 12, 2025 (AP)
Politics

Security forces seal Aleppo’s Sheikh Maqsoud, Ashrafieh districts

Amsterdam Captain Mohammed Ali Mohiuddin, who took part in the Global Sumud mission to Gaza, talks to Al Mayadeen on October 6, 2025 (Screengrab)
Politics

GSF captain says despite abuse, 'Israel weaker than spider's web'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS