Geoffrey Smith 

Investing.com — European stocks soared to all-time heights on Wednesday, as Western sanctions against Russian banks started to take effect. 

Dutch TTF futures rose to 193.95 euros (or $2214.80) an hour before dropping to 164.75 euro/MWh just after 4:25 am ET (0925 GMT). This is 35% more than the previous record close of December and 24% higher.

Due to Russia’s invasion in Ukraine and the U.S. sanctions on Russian banks, the movement shows the legal and practical uncertainties over Russia’s supply availability.

Later Wednesday, the EU will publish details about its exclusion of certain Russian banks from SWIFT’s financial messaging system. Although the EU stated last week that it would allow payments for Russian energy exports to be continued, details could still disrupt the flow of supplies. Germany said last week that it won’t commission the Nord Stream 2 new gas pipeline string that had been completed in the final quarter of 2013.

Europe imports approximately 400 billion cubic metres of gas each year, almost half of which comes from Russia. There are no immediate solutions for a gas shortage in Europe, given that the other channels like regasification plants located in Spain, England, and Belgium are running close to their capacity. 

According to Nikos Tsafos, a Washington-based researcher at the Center for Strategic and International Studies, “In certain places, LNG can be used to compensate for Russian gas. In most other places it is not.” 

Russia’s invasion of Ukraine is causing natural gas prices to rise. On Wednesday, blend futures surged 5.8% and reached $111 a barrel. The U.S. was at the bottom of this trend. After another 7.6% increase, wheat futures are close to their record high.