Monday, October 3, 2022
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Russia blames sanctions for gas pipeline shutdown

Russia has issued a warning that unless sanctions are eased, it would not restore gas shipments along a vital pipeline to Europe.

The Nord Stream 1 pipeline was closed for three days for repairs, and Moscow has blamed Western nations for its choice not to restart it.

If sanctions were lifted, commodities would undoubtedly start flowing again, a Kremlin spokeswoman said when questioned.

On Monday, gas prices increased as worries about the energy supply increased.

The European benchmark Dutch month-ahead wholesale gas price increased as much as 30% in early trade on Monday. Price increases in the UK reached a maximum of 35% before falling to £4.50 per therm.

The last several weeks have seen a lot of volatility in wholesale pricing. When Germany revealed that its gas storage facilities were filling up more quickly than anticipated, they plummeted dramatically the previous week.

Due to the situation in Ukraine, Europe has accused Russia of using gas supplies as leverage to extort money from European nations.

Dmitry Peskov, a spokesperson for the Kremlin, said on Monday that the sanctions Western nations like Germany and the UK had placed on our nation and a number of enterprises were to blame for the pumping issues.

There are no more causes that might result in pumping issues.

The closing of the Nord Stream 1 pipeline was attributed last week by the state-owned energy company Gazprom to an oil leak in a turbine on the pipeline.

However, the European Union and Siemens, the German company that looks after the turbine, have challenged this.

Such leaks may be sealed on-site and typically do not impair a turbine’s functioning. It is a standard practice that falls within the purview of maintenance work, according to a prior statement from Siemens.

The Kremlin’s move to limit supply to Europe has increased the cost of wholesale gas even though the UK is not dependent on Nord Stream 1 for its gas.

The surge in the price limit on energy bills for households in England, Wales, and Scotland is the result of the total increase.

For the increase in costs, Mr. Peskov criticized European leaders: “It is apparent that Europe is growing worse for individuals, entrepreneurs, and enterprises to live and work: less money is being generated, the quality of life is declining.”

After taking office on Tuesday, Liz Truss, who will succeed David Cameron as prime minister of the UK, has vowed to unveil a strategy to reduce excessive energy costs.

The British Chambers of Commerce warned last week that companies might “shut their doors this winter” if they were not supported with skyrocketing costs. However, UK businesses are not covered by a price ceiling.

The “crunch moment,” according to energy analyst Bill Farren-Price, might occur later in the year if gas demand is very strong and would surpass what can be imported.

The next prime minister’s primary priority, he said, will be to take steps to reduce energy costs.

Several European governments have unveiled proposals to assist consumers and companies in coping with rising energy bills. Germany launched a €65 billion (£56.2 billion) plan on Sunday that includes one-time payments to the most disadvantaged people and tax reductions for businesses that use a lot of energy.

Over the weekend, multibillion-pound assistance packages for energy businesses were also unveiled by Sweden and Finland.

Other European ministers have charged Russia with using energy supply as a tool to harm people who support Ukraine economically. Moscow has denied that it is purposefully limiting shipments as winter approaches.

Bob Carlson
Bob Carlson
Bob Carlson is a business journalist, with over a decade of experience in the trenches of reporting up-to-date business news for publications all over the world. With a wealth of knowledge at his back, Bob strives to bring the most important insights into the business world for TheOptic daily.
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