The International Energy Agency and some European lawmakers have accused Russia of exacerbating Europe's natural gas shortage as tensions flare over Ukraine. Russia has similarly accused the European Union of being responsible for its own shortage.

Last Wednesday, IEA Head Fatih Birol spoke on the European gas crunch, noting that decreased gas exports coincided with increased Russian posturing towards Ukraine. With diplomatic efforts failing and Russian President Vladimir Putin digging in with a list of demands, including the full slate of NATO non-starters, tensions aren't likely to die down anytime soon.

"The current storage deficit in the European Union is largely due to Gazprom," Birol commented. "The low levels of storage in company's E.U.-based facilities account for half of the E.U. storage deficit although Gazprom facilities only constitute 10% of the E.U.'s total storage capacity."

Birol noted Russia's current spare capacity and that against claims of Gazprom "fulfilling European contracts in full," exports with China well exceeded contractual commitments. The IEA head noted that the current shortage made an excellent case for new regulations to increase mandatory minimum storage of natural gas products.

Skyrocketing demand and production disruptions have contributed to a snowballing energy crunch that began amid the coronavirus pandemic. The coming of winter put a more resounding crunch on consumers with record-breaking prices on energy products, from gasoline in the United States to LNG in Europe.

The situation in Ukraine shows no signs of de-escalating, with Russia increasingly appearing as if it has restricted itself to violent action. Having spent the last eight years facing Russian aggression, many Ukrainians are prepared and willing to fight, meaning that any engagements would be far from quick and decisive for Russia.

There doesn't appear to be an easy "win" for Europe in any scenario, full-scale war or continued stalemate. Expanding minimum storage requirements in line with Birol's advice would be a solid first step, though further energy diversification is necessary as Europe's relationship with Russia continues to deteriorate.