The European Union is “ready to react” to Russia’s resolution to halt gasoline provides to the bloc, a high EU official instructed CNBC on Saturday.
Russia’s state-owned power large Gazprom on Friday introduced an indefinite halt to gasoline flows to Europe by way of the Nord Stream 1 gasoline pipeline, citing the necessity for extra repairs.
The transfer got here after provides had already been halted final week for a deliberate “maintenance outage” that was anticipated to final till Sept. 3.
“We expect that Russia is respecting the contracts that they have but even if the weaponization of energy will continue or will increase in response to our decisions, I think that the Euoprean Union is ready to react,” stated Paolo Gentiloni, the EU’s economics commissioner.
“Of course, we have to save energy, we have to share energy, we have [a] high level of storage and we are not afraid of Putin’s decisions,” Gentiloni instructed CNBC’s Steve Sedgwick on the Ambrosetti Forum in Italy.
“We asked Putin to respect their contracts but if they don’t respect their contracts then we are ready to react,” he stated, with out detailing precisely what actions this might entail.
Russian President Vladimir Putin smiles throughout a joint press convention with Italian Prime Minister Paolo Gentiloni following their assembly on the Bocharov Ruchei state residence in Sochi, Russia, May 17, 2017.
Yuri Kadobnov | Reuters
Gazprom stated on the Telegram messaging app that inspectors discovered an oil leak within the pipeline.
“Gas transportation to the Nord Stream gas pipeline has been completely stopped until the issues on the operation of the equipment are eliminated,” the power firm stated.
The halt to provides comes after a summer season of risky relations between Russia and the EU because the struggle in Ukraine continues, with Russia accused of “weaponizing” gasoline provides to its European neighbors in a bid to strain the bloc for sanctions aid. Russia denies utilizing power as a weapon.
Gazprom has repeatedly stated that sanctions are stopping it from sustaining and operating the pipeline effectively and had already diminished gasoline flows by way of the pipeline to round 20% of its full capability.
Gazprom’s resolution got here hours after the Group of Seven financial powers agreed on a plan to impose a value cap on Russian oil in an try and curb Moscow’s oil revenues.
A halt to all Russian gasoline provides places the EU in a good spot because it heads into the autumn and winter.
Since Russia’s unprovoked invasion of Ukraine, the EU has regarded to cut back and part out its imports of Russian gasoline. However, whereas it scrambles for different provides, it stays considerably depending on these provides.
The bloc has already known as on all members to voluntarily cut back their respective gasoline consumption by 15% within the fall and thru the winter months in a bid to eke out provides.
Source: www.cnbc.com”