Energy crisis in Europe: Russia accused of using energy as a weapon | Mint – Mint

Hours after G-7 leaders decided to put a price cap on Russian oil, Gazprom decided to abandon plans to reopen the Nord Stream pipeline. After maintenance it was due to reopen on Saturday, but the company said a problem was found.

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Gas prices have quadrupled since last year, prompting the EU to consider ground-breaking energy market interventions such as price caps, lower electricity consumption and profit taxes exceptional.

For weeks, European officials have worked to reduce demand while simultaneously planning for the prospect of supply shortages. Given that the economy has already contracted and the euro is losing value, the new measure has further increased the pressure. Winter is approaching and Europe’s resolve to defend Ukraine in its conflict with Russia could be tested.

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The European Union claimed that Gazprom was acting under “false” pretexts. Siemens Energy is the maker of the pipeline’s turbines, and the German network agency agreed that what Gazprom found did not call for shutting off the gas. There were no comments from the Kremlin.

“The use of gas as a weapon will not change the resolve of the EU,” European Council President Charles Michel said on Twitter. “We will accelerate our path to energy independence.”

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These conversations had an impact on this week’s price decline. In an effort to prepare for the possibility of a Russian shutdown, Europe has increased its stock and has a reserve for at least part of the winter. However, when stocks drop, especially towards the end of the heating season – or if Europe experiences a severe cold snap, the situation could get significantly worse.

“The situation is tense and a further deterioration of the situation cannot be ruled out,” the German Network Agency said on Saturday. “However, the gas supply in Germany is stable at the moment. Security of supply in Germany continues to be guaranteed at this time.”

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Germany, which for years has relied on cheap Russian gas to support its robust economy, is now preparing to change its energy strategy in the coming weeks. It is trying to open LNG facilities while considering keeping nuclear reactors operational, which would be a significant turnaround. Storage has already exceeded 85%.

Economy Minister Robert Habeck said this week that Germany could no longer rely on Russia for gas at all as Moscow’s efforts to squeeze Ukraine’s European partners became more apparent.

(With contributions from the agency)

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