Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/322002 
Year of Publication: 
2025
Series/Report no.: 
DIW Discussion Papers No. 2118
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
We examine the impact of the war in Ukraine on long-term contracts in energy markets. We find that traded contract volumes fall by 65 percent in the first months of the war. A collapse in bilateral trading contributes most to this decline. To protect themselves from price shocks, firms increasingly turned to long-term contracts already before the war. In sum, our results show that the market continued to serve firms' hedging needs during the crisis, but bilateral trading networks collapsed, and liquidity was largely provided by centralized markets.
Subjects: 
Firm behavior
long-term contracts
forward markets
crisis
electricity
JEL: 
D22
P48
G14
Document Type: 
Working Paper

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