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FRANKFURT/LONDON. – Russia halted gas supplies via Europe’s key supply route yesterday, intensifying an economic battle between Moscow and Brussels and raising the prospects of recession and energy rationing in some of the region’s richest countries.
European governments fear Moscow could extend the outage in retaliation for Western sanctions imposed after it invaded Ukraine and have accused Russia of using energy supplies as a “weapon of war”. Moscow denies doing this and has cited technical reasons for supply cuts.
Russian state energy giant Gazprom said Nord Stream 1, the biggest pipeline carrying gas to its top customer Germany, will be out for maintenance from yesterday to Saturday
The president of the German network regulator said that Germany would be able to cope with the three-day outage as long as flows resumed on Saturday.
“I assume that we will be able to cope with it,” Klaus Mueller told Reuters TV in an interview. “I trust that Russia will return to at least 20% from Saturday, but no one can really say.”
Further restrictions to European gas supplies would deepen an energy crunch that has already triggered a 400% surge in wholesale gas prices since last August, squeezing consumers and businesses and forcing governments to spend billions to ease the burden.
In Germany, inflation soared to its highest in almost 50 years in August and consumer sentiment soured as households brace for a spike in energy bills.
Unlike last month’s 10-day maintenance for Nord Stream 1, the latest work was announced less than two weeks in advance and is being carried out by Gazprom rather than its operator.
Moscow, which slashed supply via the pipeline to 40% of capacity in June and to 20% in July, blames maintenance issues and sanctions it says prevent the return and installation of equipment.
Kremlin spokesman Dmitry Peskov said on Wednesday that Russia remained committed to its gas supply obligations, but was unable to fulfil them due to the sanctions, according to the Interfax news agency.
Gazprom said the latest shutdown was needed to perform maintenance on the pipeline’s only remaining compressor at the Portovaya station in Russia, saying the work would be carried out jointly with Siemens specialists. – Reuters
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