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

• German electricity producer RWE AG (OTC: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.