Russia’s transfer to indefinitely droop fuel flows to Europe through Nord Stream 1 is seen as an additional escalation of its coverage to inflict financial ache to Germany.
Lisi Niesner | Reuters
Europe has been thrown into its greatest vitality disaster in a long time with pure fuel provides from Russia changing into risky and unpredictable even earlier than the invasion of Ukraine started. Now, these provides have come to a whole halt.
Russia claims punitive financial sanctions imposed on it by the West are chargeable for the indefinite halt to fuel provides through Europe’s major pipeline.
“Problems in pumping arose because of the sanctions imposed against our country and against a number of companies by Western states, including Germany and the U.K.,” Kremlin spokesman Dmitry Peskov advised reporters on Monday, in response to Russian state information company Interfax.
Asked whether or not pumping fuel through Nord Stream 1 was fully depending on the sanctions and that provides would resume if these had been lifted or relaxed, Peskov replied, “Of course. The very sanctions that prevent the maintenance of units, which prevent them from moving without appropriate legal guarantees, which prevent these legal guarantees from being given, and so on.”
“It is precisely these sanctions that the Western states have introduced that have brought the situation to what we see now,” Peskov added.
Coming straight from the Kremlin, such feedback symbolize the clearest indication but that Russia is searching for to stress Europe to elevate the financial measures, introduced on to punish Russia over its unprovoked invasion of Ukraine, to ensure that the faucets to be turned again on forward of winter.
European lawmakers have repeatedly accused Russia, historically its largest vitality provider, of weaponizing vitality exports in an try to drive up commodity costs and sow uncertainty throughout the 27-nation bloc. Moscow denies utilizing vitality as a weapon.
Russia’s state-owned vitality large, Gazprom, halted all exports through Nord Stream 1 from Aug. 31, citing upkeep work on its solely remaining compressor.
However, whereas flows had been attributable to resume after three days, Gazprom on Friday cited an oil leak for the indefinite shutdown of the pipeline. The shock announcement got here scorching on the heels of a joint assertion from the G-7 financial powers backing a proposal to place a price-capping mechanism on Russian oil.
In what vitality analysts see as an escalation of Russia’s bid to inflict financial ache on the area, the Kremlin has since mentioned that the resumption of fuel provides to Europe is totally depending on Europe lifting its financial sanctions in opposition to Moscow.
The halt to provides through the Nord Stream 1 pipeline, which connects Russia to Germany through the Baltic Sea, prompted European fuel costs to leap Monday, with many fearful that components of Europe may very well be pressured to ration vitality by way of the winter. It has additionally exacerbated the chance of a recession within the area.
Gazprom vs. Siemens Energy
Meanwhile, Gazprom’s deputy CEO, Vitaly Markelov, advised Reuters on Tuesday that fuel flows through the Nord Stream 1 pipeline wouldn’t proceed till Germany’s Siemens Energy repairs defective tools.
Siemens Energy was not instantly accessible to remark when contacted by CNBC on Tuesday.
However, the corporate advised Reuters that it is not presently commissioned by Gazprom to do upkeep work on the turbine with the suspected oil leak, however mentioned it stays on standby to take action.
Siemens Energy added that it “cannot comprehend this new representation based on the information provided to us over the weekend.”
Gazprom’s Deputy CEO Vitaly Markelov advised Reuters on Tuesday that fuel flows through the Nord Stream 1 pipeline wouldn’t proceed till Germany’s Siemens Energy repairs defective tools
Sascha Schuermann | Afp | Getty Images
Mark Dixon, founding father of the Moral Rating Agency, a analysis group centered on international companies in Russia, mentioned Gazprom blaming Siemens Energy for the fuel provide reduce was “yet another example of a state lie from the Russian Federation.”
“Russia lied its way into the invasion and has lied ever since,” Dixon mentioned. “Gazprom is Russia, make no mistake. It has no choice but to lie in chorus with [Russian President Vladimir] Putin.”
Russia has drastically diminished fuel provides to Europe in current months, with flows through the pipeline working at simply 20% of the agreed-upon quantity earlier than the indefinite suspension.
“Russia’s move to again cut gas supply to the EU just as the region scrambles to fill its inventories ahead of winter is a further escalation of its policy of the past months to inflict economic pain through repeated supply cuts to Germany, the EU’s biggest economy and gas consumer,” analysts at political threat consultancy Eurasia Group mentioned in a analysis word.
“Sources in Berlin say they are now making all winter energy plans on the assumption of zero supply from Russia,” they added. “That means there will now also be a focus on central and southern Europe, which still receives Russian gas including through pipeline transit of Ukraine and Turkey.”
Winter is coming
European policymakers are presently racing to safe fuel provides in underground services to be able to have sufficient gasoline to maintain properties heat throughout the colder months.
Energy analysts say Russia’s newest transfer to droop fuel flows through Europe’s main provide route might exacerbate what was already prone to be a particularly difficult winter interval.
“The European energy sector continues to be shocked by price volatility and uncertainty over energy balances for the coming winter,” analysts at consultancy Rystad Energy mentioned in a analysis word, noting that energy spot costs throughout Western Europe have climbed to “unparalleled levels.”
“This latest move has significantly increased the risk that Europe may not get further gas flows through Nord Stream 1 for the whole winter,” they added.
Source: www.cnbc.com”