Russia again cuts natural gas exports through European pipeline

BERLIN (AP):

Russia’s Gazprom announced a reduction in natural gas flows through a key European pipeline for the second day in a row Wednesday, creating further energy turmoil for Europe as it tries to reduce its extensive use of Russian oil and natural gas amid the war in Ukraine.

The state-owned energy giant said on Twitter that deliveries through the Nord Stream 1 pipeline to Germany would be cut again Thursday, bringing the overall reduction through the undersea pipeline to 60 per cent.

REDUCE FLOWS

The drop in shipments of gas used to power industry and generate electricity would amount to some 16 billion cubic metres by the end of the year, or around 10 per cent of total European Union gas imports from Russia, according to Simone Tagliapietra, an energy policy expert at the Bruegel think tank in Brussels.

The new cut came a day after Gazprom said it would reduce flows by 40 per cent after Canadian sanctions over the war prevented German partner Siemens Energy from delivering overhauled equipment. It blamed the same issue for the additional reduction.

But German Vice Chancellor Robert Habeck said Wednesday that Gazprom’s initial move appeared to be political rather than a result of technical problems. He said the new developments “clearly show the Russian side’s explanation is simply an excuse”.

“Obviously, the strategy is to unsettle people and push up prices,” Habeck said.

Gazprom also told Italian gas giant Eni that it would reduce gas through a different pipeline by roughly 15 per cent on Wednesday. The reason for the reduction has not been made clear, and the Italian company said it was monitoring the situation.

The reduced flows to two of Europe’s biggest importers of Russian natural gas follow Russia’s previous halt of gas supplies to Bulgaria, Poland, Finland, the Netherlands and Denmark.

Europe is working to reduce its dependence on Russian energy as the war worsens rising oil and gas prices that are fuelling record inflation. Gas demand has fallen after the end of the winter heating season, but European utilities are racing to refill storage ahead of next winter with prices high and supplies uncertain.