Nord Stream 1 suspension stokes European gas fears
Moscow blames Western sanctions as G7 agrees on Russian oil price cap
The announcement on Friday by Gazprom of Russia that it will shut down the Nord Stream 1 natural gas pipeline indefinitely until a turbine is repaired has further raised concern in Europe about winter fuel supplies.
Nord Stream 1 had been due to resume operating on Saturday after a three-day halt for maintenance. But Gazprom said on Friday that it could not safely restart deliveries until it had fixed an oil leak found in a vital turbine. The leak was found at the main gas turbine at the Portovaya compressor station near St Petersburg, it said.
Gazprom said it had discovered the new problems during a technical inspection with representatives of the German company Siemens, which built the turbine.
Russian officials have blamed Western sanctions for hampering routine maintenance of the Nord Stream 1 pipeline.
However, Siemens Energy argued that such a leak should not stop the pipeline from operating.
"Such leaks do not normally affect the operation of a turbine and can be sealed on site," the company said. "It is a routine procedure within the scope of maintenance work."
European Commission spokesman Eric Mamer said Gazprom's announcement was "under fallacious pretenses" and "another confirmation of its unreliability as a supplier".
"It's also proof of Russia's cynicism, as it prefers to flare gas instead of honoring contracts."
Gazprom's announcement came as European Commission President Ursula von der Leyen called for price caps on Russian gas to Europe.
Russia retorted that this would be sufficient cause to halt sales to Europe altogether.
"There will simply be no Russian gas in Europe," the former Russian president Dmitry Medvedev, now deputy chairman of the Security Council of Russia, said in response to von der Leyen's words.
Following an agreement by G7 finance ministers on Friday to put a price cap on Russia oil exports, Russia said it would stop selling oil to countries that impose price caps on Russia's energy resources, adding that price caps would lead to significant destabilization of the global oil market.
Wholesale natural gas prices have risen 400 percent since August last year, dealing a heavy blow to European industry and households.
Gazprom had already cut the flow through Nord Stream 1 to 40 percent of its capacity in June. In July it was operating at only 20 percent of capacity.
Reduced flow via Nord Stream 1 and lower gas flows via Ukraine, another major route, have caused panic among European countries that are fighting to fill their storage tanks for the upcoming winter season.
European Commissioner for Economy Paolo Gentiloni said the EU expected Russia to respect energy contracts it has signed. However, the EU was still well-prepared in case of a total halt of Russian gas deliveries, he said.
Germany, which depends heavily on Russian energy, has stepped up efforts to fill its storage tanks before winter. The storage has reached 85 percent full, but the German government said reaching a 95 percent target by Nov 1 will be tough unless businesses and households consume less fuel.
On Thursday Germany adopted its Energy Saving Ordinance for six months to tackle the potential energy crisis.
Under the rules, retail stores may reduce their business hours and reduce electricity consumption for air conditioning.
Illuminated advertising must be switched off after 10 pm and monuments and other buildings may no longer be illuminated at night. In public buildings, halls and corridors will generally no longer be heated, and office temperatures will be limited to a maximum of 19 C.
A survey in France, Germany, Poland and the United Kingdom has shown that many Europeans worry that high inflation due to the current energy crisis could fuel social unrest, protests and strikes.
The survey, conducted by You-Gov for the nonprofit organization More in Common, shows that the cost of living has become the most important issue for Europeans in the four countries.
An estimated 70,000 people took to the streets in Prague on Saturday against the Czech government, calling on the ruling coalition to do more to control soaring energy prices and voicing their opposition to the EU and NATO.
Organizers of political groups on the right and left said the Czech Republic should be neutral militarily and ensure direct contracts with gas supplies, including Russia.
Agencies contributed to the story.
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