FOR TRANSLATION BUSINESS
Russia cuts gas flow to Europe
July 27, 2022 - Fears of a European gas crisis are mounting as Russia cuts supplies through its main pipeline to a fifth of capacity, threatening to leave the continent short of supplies ahead of winter.
European politicians have accused Russian President Vladimir Putin of “weaponising” gas supplies.
State-owned energy group Gazprom said it would cut flows on the Nord Stream 1 pipeline in half to just 20 per cent of capacity from tomorrow, having already lowered them to 40 per cent in mid-June.
Gazprom claims the cuts are due to problems with turbines maintained by Germany’s Siemens Energy at a factory in Canada. However, Canada this month waived sanctions on providing equipment to Gazprom to allow the return of the turbines.
European leaders see Gazprom’s move as Russian retaliation for sanctions imposed after it invaded Ukraine.
The European Commission has told EU member states to cut their consumption by 15 per cent over the winter amid concerns that Russia will completely halt gas exports.
European gas prices shot higher after Gazprom’s announcement. Futures contracts for delivery next month tied to TTF, the European benchmark wholesale gas price, jumped about 10 per cent on Tuesday to €195 per megawatt hour, the highest level since early March.