CNBC: Gas shortage ‘key risk’ for eastern Europe

Overreliance on Russian gas leaves Europe vulnerable if the conflict with Ukraine escalates, and it is eastern Europe that is most at risk, analysts have warned.

Both the European Union (EU) and United States have threatened to ratchet up sanctions against Russia unless it reins in pro-Russia rebels in eastern Ukraine, following Russia's annexation of Ukraine's Crimea region earlier this year.

So far, sanctions enforced include visa bans and asset freezes on companies and officials with links to Russian President Vladimir Putin. However, hawks in Washington in particular, have called for tougher penalties to hit Russia's vital energy industry, which accounts for around one quarter of its economy.

Such sanctions would hit Europe too though, given that Russia provides the EU with around one third of its natural gas imports, accounting for one quarter of the region's total natural gas consumption.
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