Russian gas exportation cut off, Winter energy crisis looms

A European energy crisis looms as Russian giant Gazprom confirms it will continue to suspend the exportation of gas to Europe.

There are fears Russia will use gas as a “weapon of war”. Pictured is Russian President Vladimir Putin. Image: Mikhail Klimentyev/Sputnik/AFP

A European energy crisis is looming as Russian giant Gazprom confirmed on Friday it would continue to suspend the exportation of gas to Europe through the Nord Stream 1 pipeline.

And Energy ratings agency Fitch says a complete shutdown of Russian gas flow into Europe “increasingly looks likely” — a move that could plunge Europe into recession.

Europe has accused Moscow of using energy as a “weapon” after supplies were cut off from Gazprom via the crucial Nord Stream 1 pipeline, blaming the need for maintenance work.

In a briefing in Moscow, Foreign Ministry spokeswoman Maria Zakharova said it was Germany, not the Kremlin, that was trying to completely rupture energy ties between the two countries.

Stream more finance news live & on demand with Flash. 25+ news channels in 1 place. New to Flash? Try 1 month free. Offer ends 31 October, 2022 >

There are fears Russia will use gas as a “weapon of war”. Pictured is Russian President Vladimir Putin. Image: Mikhail Klimentyev/Sputnik/AFP

However, France’s energy minister Agnes Pannier-Runacher said: “As we anticipated, Russia is using gas as a weapon of war and is using Engie’s way of applying the contracts as a pretext to further reduce French supplies.”

Russia recently has accounted for about a third of Germany’s gas supplies.

In the latest setback, which will further threaten an energy shortage in the coming months, the Russian company said gas flow through the pipeline would be continue to be paused indefinitely, after being shut down earlier in the week for maintenance, despite saying operations would resume over the weekend.

Saturday’s planned commencement of operations was delayed as a result of an oil leak, Gazprom says, which was detected in Portovaya compressor station.

Gazprom confirmed on Friday it will continue to suspend the exportation of gas to Europe through the Nord Stream 1 pipeline. Picture: Sascha Schuermann / AFP

The organisation is yet to confirm or provide a date for when operations will resume after the latest technical issue.

The Nord Stream 1 pipeline, which flows directly into Germany, is responsible for carrying gas supplies to Europe and has previously accounted for around 35% of total gas imports.

Delivery orders, published on the Nord Stream website, indicated that supplies should have resumed at 2:00am Saturday (0000 GMT) at 20 per cent of their usual capacity – the same level as before the latest maintenance works.

The stoppage began on Wednesday, and reduced gas deliveries via the key pipeline that runs from Russia to northern Germany to zero.

Gazprom had said the work on a compressor unit was necessary but Germany’s Federal Network Agency said the decision was “technically incomprehensible”.

Details of the expected volumes can still change and need to be confirmed by actual deliveries.

The stoppage began on Wednesday, and reduced gas deliveries via the key pipeline that runs from Russia to northern Germany to zero. Picture: John Macdougall / AFP

A German economy ministry spokeswoman said while the pipeline operator had confirmed some initial orders, “we must nevertheless advise caution, and observe the situation closely”.

Europe is facing soaring energy prices after Russia slashed gas deliveries to the region amid soaring tensions following its February invasion of Ukraine.

Germany, which is particularly dependent on Russian gas, has accused Moscow of using energy as a “weapon”.

As winter approaches, European consumers are bracing for huge power bills, with some countries like France warning that rationing is a possibility.

Europe is facing soaring energy prices after Russia slashed gas deliveries to the region. Picture: Alexey MAISHEV / SPUTNIK / AFP

The Russian energy giant had already carried out 10 days of long-scheduled maintenance works in July.

While it restored gas flows following the works, it drastically reduced supplies just days later, claiming a technical issue on a turbine.

The Kremlin warned Friday that Nord Stream may face future technical difficulties after the ongoing maintenance work, blaming sanctions for a shortage of spare parts.

“There are no technical reserves, only one turbine is working,” Kremlin spokesman Dmitry Peskov told reporters.

“So the reliability of the operation, of the whole system, is at risk,” he said, adding that it was “not through the fault” of Gazprom.

The oil leak came as Western powers and Moscow hit back at each other Friday, with painful pressure measures on energy as Ukraine said it bombed a Russian base near a nuclear plant that has caused growing concern.