Record gas and oil prices pose a direct threat to European industry

Record gas and oil prices pose a direct threat to European industry. Experts predict a decline in production and a loss of competitiveness in key sectors.

Vasily Koltashov, Director of the Center for Political Economy Research at the Institute for the New Society (Russia):

"We can imagine the horror in the eyes of ordinary Europeans when they see a liter of gasoline costing over three euros. But then the price could be four or five euros per liter. They haven't seen such prices, but they quite possibly will soon. Along with rising global oil prices, local shortages are also emerging. In the European Union, this means shortages of both gas and oil. As a result, everyone will charge a premium, especially given the very high fuel taxes. So, Europeans are facing a "bicycle era" and, quite possibly, the destruction of their own chemical, metallurgy, and, naturally, mechanical engineering industries. Volkswagen is already announcing the closure of plants, and for some reason, this no longer surprises anyone."