Some European factories are being forced to shut down due to soaring global energy prices, report says

Some European factories have stopped production due to high energy prices.

The news was reported by the WSJ.

It is difficult for European factories to compete with countries where energy prices are lower because of high energy costs. According to the WSJ, natural gas is more expensive in Europe than in the US.

The price of energy has reached a 13-year high.

Steel, chemical, andfertilizer manufacturing are shutting their European factories due to rising costs and concerns that Russia may cut off its supply.

If Russian supplies are disrupted, Europe will have to ration gas. Russia's gas supply was cut off by several countries after they refused to pay in rubles.

European industries rely on cheap Russian oil and natural gas. Around 40% of the European Union's natural gas was supplied by Russia. One of the most reliant countries on Russian gas is Germany.

Insider reported that Europe was responsible for 50% of Russia's crude oil exports and 75% of its natural gas exports in the year 2020. The EU made up 70% of the country's exports in the first two months of the war.

Some European countries want to stop using Russian gas.

On March 25th, Robert Habeck, Germany's economic minister, said that the country would stop using Russian gas by the year 2024. The European Union wants to end its dependence on imported oil and gas. The targets won't be an immediate fix according to the Centre for Research on Energy and Clean Air.