Business Magazine 24

Nord Stream 1: Russia shuts major gas pipeline to Europe

Nord Stream worker at controlsGetty Images

Russia has completely halted gas supplies to Europe via a major pipeline, saying repairs are needed.

The Russian state-owned energy giant, Gazprom, said the restrictions on the Nord Stream 1 pipeline would last for the next three days.

Russia has already significantly reduced gas exports via the pipeline.

It also rejects accusations of using energy supplies as a way to punish Western nations for imposing sanctions over the invasion of Ukraine.

The Nord Stream 1 pipeline stretches 1,200km (745 miles) under the Baltic Sea from the Russian coast near St Petersburg to north-eastern Germany.

It opened in 2011, and can send a maximum of 170m cubic metres of gas per day from Russia to Germany.

The pipeline was shut down for 10 days in July – again for repairs, according to Russia – and has recently been operating at just 20% capacity because of what Russia describes as faulty equipment.

European leaders fear Russia could extend the outage in an attempt to drive up gas prices, which have already risen by 400%.

The steep rise threatens to create a cost of living crisis over the winter months, potentially forcing governments to spend billions to ease the burden.

On Tuesday, French Energy Minister Transition Minister Agnes Pannier-Runacher accused Russia of “using gas as a weapon of war”.

She was speaking after Gazprom said it would be suspending gas deliveries to the French energy company Engie.

But Russian President Vladimir Putin’s spokesman has rejected the accusations and insisted that Western sanctions have caused the interruptions by damaging Russian infrastructure.

He insisted that that “technological problems” caused by Western sanctions are the only thing preventing Russia from supplying gas via the pipeline, without specifying what the problems were.

The most recent controversy has been over a turbine which arrived in Germany after being repaired in Canada and which Russia refused to take back , arguing it was subject to the Western sanctions.

Germany, however, denies this.

Earlier this month, Economy Minister Robert Habeck said the pipeline was fully operational and said there were no technical issues as claimed by Russia.

Earlier this week, EU Commission President Ursula von der Leyen promised to intervene in energy markets, telling a conference in Slovenia that they are “no longer fit for purpose”.

“We need a new market model for electricity that really functions and brings us back into balance,” she said.

Last week, the BBC revealed that Russia has been burning off an estimated $10m (£8.4m) worth of gas every day at a plant near the Finnish border.

source

Exit mobile version