RWE AG May Be Forced To Cover Risk Of Soaring Energy Prices

by Shivani Kumaresan, Benzinga Staff Writer

March 15, 2022 7:34 AM | 1 min read | Make a Comment

German electricity producer RWE AG RWEOY could set aside capital to manage soaring energy prices if Russian gas imports are halted due to the Ukrainian crisis in the long term, Bloomberg reported.
Energy companies and traders have been facing the jitters as the Russian invasion of Ukraine, and the consequent sanctions have disturbed commodity markets.
Soaring prices could make some of RWE’s purchase contracts with other utilities unprofitable, forcing it to take precautions.
The report added that the European Union plans to cut Russian gas imports by two-thirds in 2022, forcing members to diversify away from Moscow.
Price Action: RWEOY shares closed at $40.52 on Monday.