Russia to keep a key gas pipeline to the EU shut

• Gazprom, Russia’s state energy company, said it discovered a leak on Nord Stream 1.
• The pipeline to Germany has been closed for three days for what Gazprom described as maintenance work.
• Europe accused Russia of blackmailing it with its gas supplies during Ukraine conflict.

Russia’s main gas pipeline to Europe will not reopen on Saturday as planned, raising concerns about energy supply this winter.

Gazprom, Russia’s state energy company, said it discovered a leak on Nord Stream 1, which means it could be shut down indefinitely.

The pipeline to Germany has been closed for three days for what Gazprom described as maintenance work.

Europe accused Russia of blackmailing it with its gas supplies during the Ukraine conflict, which Moscow denies.

Energy prices have skyrocketed since Russia invaded Ukraine, and scarcity of supplies could drive them even higher.

There are growing concerns that families in the EU will be unable to afford heating this winter.The United Kingdom may also be affected. Although it is not dependent on Nord Stream 1 for gas, the pipeline suspension could increase the cost of wholesale gas, which has been driving the spiralling rise in the energy price cap.

Economics journalist, Faisal Islam, described the indefinite closure of Nord Stream 1 as a “very serious development,” noting that Russia had kept supplies into Europe flowing even during the Cold War.

Because of the standoff with Russia, countries have been forced to replenish their own gas supplies, with Germany’s stores increasing from less than half full in June to 84% full today.

As a result, while international gas prices have dropped in the last week, they remain high by historical standards.

Europe is attempting to wean itself off Russian energy in order to limit Moscow’s ability to fund the war, but the transition may be too slow.

Russia’s move, according to EU Council President Charles Michel, was “sadly no surprise.”

Moscow denies using energy supplies as a financial weapon against Western countries that support Ukraine.

It has blamed the sanctions for delaying routine Nord Stream 1 maintenance, but the EU claims this is a ruse.

The Bundesnetzagentur, Germany’s network regulator, said the country was now better prepared if Russian gas supplies were to cease, but it urged citizens and businesses to reduce consumption.

Gazprom’s announcement came just days after the G7 nations agreed to cap Russian oil prices in support of Ukraine.

The G7 (Group of Seven) countries are the United Kingdom, the United States, Canada, France, Germany, Italy, and Japan.

With the implementation of a price cap, countries that sign up to the policy will be able to purchase only Russian oil and petroleum products transported by sea that are sold at or below the price cap.

Russia, on the other hand, has stated that it will not export to countries that are part of the cap.

The pipeline runs from the Russian coast near St. Petersburg to north-eastern Germany and can transport up to 170 million cubic metres of gas per day.

Also Read

G7 discusses Russian oil price cap with India and China

The G7 democracies have had cordial and fruitful discussions with China and...