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Gazprom cuts more gas supplies to EU

July 26, 2022
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Gazprom cuts more gas supplies to the EU

Gazprom cuts more gas supplies to the EU

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Gazprom cuts more gas supplies to the EU

Russian energy giant Gazprom reported on Tuesday it will once again drastically cut gas supplies to the EU via its main pipeline due to maintenance work.

Gazprom stated blocking another turbine at the Nord Stream 1 pipeline would cut daily gas production to 20%, halving the current level of supply.

The German government noted there was no technical explanation to limit gas supply.

It is likely to make it harder for EU countries to replenish their supplies of gas before winter.

The Nord Stream 1 pipeline, which pumps gas from Russia to Germany, has been conducting well below capacity for weeks and was totally shut down for a 10-day maintenance leave earlier this month.

Russia provided the EU with 40% of its gas last year, and the EU has charged Russia with using energy as a weapon.

The European Commission called on countries to cut gas use by 15% over the next seven months after Russia cautioned it could curb or halt supplies altogether.

Under the recommendations, the voluntary mark could become mandatory in an emergency.

European Commission President, Ursula von der Leyen, reported the prospect of Russia cutting off all supplies to the EU is a “likely scenario”.

Energy ministers on Tuesday will meet in Brussels and try to sign off the plans.

But numerous opt-outs are anticipated amid resistance from some member states.

Wholesale gas costs have soared since Russia invaded Ukraine in February, with a knock-on impact on consumer energy bills.

Reacting to Gazprom’s information, Ukrainian President Volodymyr Zelensky asserted this was “an overt gas war that Russia is waging against a united Europe – this is exactly how it should be perceived”.

Gazprom declared the latest contraction in supply would start at 04:00 GMT on Wednesday due to the “technical condition” of one of the last two operating turbines.

But a German economy ministry spokeswoman told the AFP news agency: “According to the information we have there is no technical reason for a reduction of deliveries.”

The Kremlin claims that it is a reliable energy partner, and accuses Western sanctions of the current disruption of gas supplies to the EU.

Gazprom added the delayed return because boycotts of equipment serviced in Canada have forced it to keep the gas flow through Nord Stream 1 to just 40% of capacity.

“Our product, our rules. We don’t play by rules we didn’t create,” Gazprom chief executive Alexei Miller reported.

The ongoing drop in gas supply through Nord Stream 1 is likely to make it more difficult for countries to replenish their stores before winter when gas usage is much higher.

Gazprom has ban gas supplies altogether to Bulgaria, Denmark, Finland, the Netherlands, and Poland, over their rejection to comply with the Kremlin to pay their bills in roubles, rather than euros or dollars.

Tags: European UniongasgazpromGazprom ExportGermanynewsRussia
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