As Putin strengthens its gas supply grip, the EU urges member states to distribute energy

European Commission President Ursula von der Leyen said Russia is likely to end its gas supply to Europe.

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European countries are being called upon to reduce natural gas consumption by at least 15% until next spring as part of a broader plan to address the decline in supply from Russia.

The European Commission, the EU’s executive body, announced on Wednesday plans on how countries can prepare for the much higher energy demand winter.

The plan looks like this Russian energy giant Gazprom claims it cannot fulfill its gas contract with Brock — Given that Russia was heavily dependent on energy before the invasion of Ukraine, it is a major headache for European countries.

“Russia is threatening us. Russia is using energy as a weapon. Therefore, in any case, with a complete shut-off of Russia’s gas, whether it is a partial major shut-off of Russia’s gas. “Europe needs to be ready, no matter what,” said Ursula von der Leyen, chairman of the European Commission, at a press conference Wednesday.

The plan requires 27 EU countries to reduce gas consumption by 15% between August 1, 2022 and March 31, 2023. To achieve this, 27 EU governments need to update their national emergency plans and report to the Commission. Every two months about how they are progressing towards their goals.

The Commission can mandate this currently voluntary goal for all EU countries in severe gas shortage scenarios.

So far, 12 member countries have suffered a decline in gas flow, and two more have been completely cut off from Russia’s supply.

Von der Leyen said it was a “probable scenario” for Russia to stop supplying blocks altogether. As a result, she added that any turmoil would affect all countries, regardless of energy demand. Therefore, it is important that EU countries that may need it and “all member states contribute to gas savings, storage and are ready to share gas”.

The European Union is preparing for a complete shutdown of gas supplies from Russia following the onslaught of Moscow in Ukraine. However, the level of preparation seems to be increasing as there is growing concern that Russia will actually significantly reduce or even end its influx into Europe.

The NordStream1 pipeline, the main transit point for Russian gas to Europe, was closed for maintenance work until 21 July. However, many European authorities are skeptical that the flow will resume at full capacity.

Russia’s energy giant Gazprom said Monday that it could not fulfill its gas contract with Europe due to unforeseen circumstances. German energy company Uniper rejected Gazprom’s claim.

This latest development adds to previous concerns that Russia is approaching a complete closure of its gas supply to Europe. Flow has already dropped by 60% last month..

“Russia is intensifying the commodity war against Europe by freezing gas supplies through Nord Stream 1,” Velina Tchakarova, director of the Austria-based think tank AIES, told CNBC.

She said the move from Russia was “Europe’s storage capacity is not filled to the required extent and the governments of European countries, which are heavily dependent on Russia’s gas supply, have full gas ahead of the winter season. It must be seen as a precursor to an embargo. ” She is under immense financial pressure, “she said.

The European economy is already facing a harsh economic outlook that record levels of inflation and growth are suffering from constant downward revisions. Much of this economic reality is caused by the energy crisis, which was greatly highlighted by the Russian war in Ukraine.

As the Commission is also strengthening gas transactions with other parts of the world, the next plan to prepare for the winter comes.On Monday it was announced New agreement With Azerbaijan, it has previously signed a contract with the United States.

European energy commissioner Kadori Simson said in June that gas filling levels were above 56%, but some member states will make further progress in the coming weeks to improve capacity levels. I had to. In March, the Commissioner requested a minimum storage target of 80% by November 1.

As Putin strengthens its gas supply grip, the EU urges member states to distribute energy

Source link As Putin strengthens its gas supply grip, the EU urges member states to distribute energy

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