A $1T energy bill for the EU is only the beginning of the crisis.

  Europe has been hit by roughly $1T in surging energy costs resulting from the fallout of Russia’s war in Ukraine, and the most profound crisis in decades is only getting started. After this winter, the region will have to refill gas reserves with little to no deliveries from Russia, intensifying competition for fuel tankers. Even with more facilities to import LNG coming online, the market is expected to remain tight until 2026, when additional production capacity from the US to Qatar becomes available. That means there will be no respite from high prices. While governments have been able to help companies and consumers absorb much of the blow with more than $700B in aid, according to the think tank Bruegel, a state of emergency could last for years. With interest rates rising and economies likely already in recession, the support cushioned the blow for millions of households and businesses is becoming increasingly unaffordable. When you combine bailouts and subsidies, it’s going to be much harder for governments to manage this crisis next year, according to Bloomberg.