an hour ago
Russia completely shuts down gas supplies for three days citing renovation work on the Europe-bound Nord Stream One pipeline.
Russia’s state-controlled energy company Gazprom said a leak had been detected in the pipeline, although it was scheduled to reopen on Saturday. That means, the pipeline is being shut down indefinitely.
The G-7 alliance yesterday (Friday) agreed to set a ceiling on the import price of Russian fuel. Soon after, Russia announced its decision to shut down the Nord Stream gas pipeline indefinitely.
The G7 alliance consists of – the United States, Britain, Canada, France, Germany, Italy and Japan.
Moscow has also warned that it will not sell oil to countries that try to set a maximum import price for Russian oil.
The rapid rise in fuel prices in Europe has raised serious concerns that the common man will be in dire straits in the coming winter season. In the midst of it, this bad news of the stoppage of gas from Russia appeared.
Already, after the Russian military attack on Ukraine, the price of energy in Europe is rising day by day. The news of the pipeline shutdown has raised fears that the market could become more volatile.
Europe has been exploring alternatives for the past six months to reduce its dependence on Russian oil and gas, although achieving that goal will take time.
European Council President Charles Michael said Russia’s move was “regrettable but not entirely unexpected.”
“The European Union’s resolve cannot be weakened by using gas as a weapon. Our efforts for energy independence will only accelerate. It is our duty to support our people and Ukraine’s independence.”
But Russia denies using the fuel as a weapon. According to them, pipeline maintenance has become difficult due to Western sanctions.
However, the European Union thinks that this argument of Russia is completely pretextual.
Gas prices quadrupled in a year
Germany’s gas network regulator says Germany is now more prepared than ever to deal with a complete shutdown of Russian gas supplies. But ordinary Germans are being urged to save fuel.
The Nord Stream One gas pipeline runs from the Russian coast near St. Petersburg to eastern Germany. 170 million cubic meters of gas can be supplied through this pipeline every day.
Another gas pipeline, Nord Stream 2, was jointly built by Russia and Germany, but it was closed after the Russian attack on Ukraine.
The Nord Stream One pipeline was also shut down several times after the start of the war. The pipeline was closed for 10 consecutive days in July. Even though it starts later, the gas supply level is greatly reduced.
Cornelia Mayer, an energy analyst from the Swiss capital of Bern, told the BBC that a complete shutdown of Russian gas would have a huge impact on Europe. Prices of goods will rise and people will lose jobs, he said.
“European gas prices have quadrupled compared to a year ago … not only are gas prices rising, but gas is used as fertilizer, many factories run on gas, resulting in a crisis in employment, increasing prices in the market.”