Nord Stream 1 Scheduled Repair a Test of Europes Resolve

by Wall Street Rebel - Michael London | 07/11/2022 8:47 AM
Nord Stream 1 Scheduled Repair a Test of Europes Resolve

The natural gas supplies delivered by the Nord Stream 1 pipeline were completely cut off as the pipeline started a 10-day maintenance period amid uncertainties on how long the closure would actually last.


Nord Stream 1, the vital undersea pipeline that transports natural gas from Russia to Germany, came to a halt on Monday when it was taken offline for a period of scheduled maintenance that would last ten days. This put Europe's determination to become less reliant on Russia's plentiful fuel supplies to the test.

Germany continues to receive 30 percent of its natural gas from Russia, the majority of which is used to power the country's economically crucial industrial sector. The sanctions were imposed in an effort to penalize Moscow for its invasion of Ukraine.

Gas is also transported by the Nord Stream 1 pipeline to a number of other nations within the European Union, including Austria, Italy, and the Czech Republic.

Nord Stream 1 can transport 55 billion cubic meters of natural gas; however, since the middle of June, it has reduced its supply to Germany by around 60 percent due to the absence of a piece of equipment known as a turbine that is currently undergoing repair in Canada.

Soon after, Germany, highly reliant on Russian energy, said it was experiencing a gas shortage. Because of this, energy costs skyrocketed to all-time highs.

The action has compelled Germany to boost its gas emergency alert level to the second of three levels — the third and final stage would empower the government to initiate gas rationing — as well as approve a law to bail out utility companies and put coal-fired power plants back online.

Officials in Berlin are now concerned that Gazprom could take advantage of the usual shutdown to cut off supply entirely. This would thwart Germany's plans to fill the country's gas storage reserves by the end of November, thereby bolstering supplies for the winter months.

The nation's storage facilities are just above 63 percent full; however, if Russia were to switch off all supplies beyond the 10-day maintenance period, it is possible that this aim would no longer be attainable.

On Sunday, the French minister in charge of the economy, finances, and recovery issued a warning that Russia will likely cut off its natural gas supply to Europe completely.

This action would have a incredible impact on the geopolitics of the entire world. It would reverse decades of growth in Europe and Russia, which have been dependent on energy sales.

Bruno Le Maire, the French Minister of the Economy, made the following statement while speaking at the economic festival Les Rencontres Économiques in the south of France: "Let's prepare ready for a total shutdown of the Russian gas supply."

"This is the occurrence that is most likely to occur."

In order for France to wean itself off of its reliance on Russian energy, he urged the country to make speedy investments in other energy sources such as biogas and nuclear technologies.

In addition to his assertion that the conflict in Ukraine had the potential to grow, he cautioned, "We should not take Vladimir Putin's threats lightly."

According to a report by Reuters, on Sunday, Canada announced that it would lift the restrictions placed on Russia to permit the turbine's return.

According to Radio Free Europe, Ukraine has referred to the shutdown as a bluff. It has denounced relaxing sanctions as setting a "dangerous precedent" that would only deepen European dependence on Russia. Both of these statements were made in response to the easing of sanctions.

According to a report in The Washington Post, the European Union leveled allegations of "blackmail" against President Vladimir Putin when Russia cut off its gas supplies to Poland and Bulgaria in April.

This action was taken as a direct reaction to the enormous economic sanctions that had been imposed on Russia by the European Union and other Western nations as a form of retaliation for the invasion of Ukraine.

Since Russia's invasion of Ukraine, the European Union (EU) has collaborated with the United States and other allies to impose sanctions on Moscow; however, several member countries continue to rely significantly on Russian oil and gas.

The Kremlin requires that all payments be made in rubles for all bills.

This move represents a significant escalation in the standoff between Russia and the EU over the conflict in Ukraine. It can potentially force major European economies, such as Germany, to scramble for new suppliers and send energy prices even higher.

Even though Poland and Bulgaria have secured enough natural gas from other EU countries to keep the lights on, for the time being, it is unclear whether the bloc could withstand further cutoffs. This is especially true if Russia stops supplying natural gas to countries such as Germany and Austria, dependent on Russian gas imports.

Officials from the European Union have stated that the cuts to Poland and Russia amount to "blackmail," They have emphasized the necessity for Europe to wean itself off its dependence on fossil fuels from Russia.

Vladimir Putin has had enormous influence over European politics largely due to Russia's ability to exert control over a sizeable amount of Europe's energy supplies.

Russia has been able to change the gas supply in a way that is hurtful to European economies and keeps those economies on edge. This has occurred while European countries have been scrambling to minimize their dependence on Russia's gas.

According to the Breugel think tank based in Belgium, the percentage of the EU's energy supply that comes from Russia has dropped from approximately 40 percent to 20 percent in recent years.

However, this action resulted in a significant rise in the price of energy, which had already been on the rise prior to the invasion, plunging a number of countries into an economic crisis.

Yasmin Fahimi, the head of labor unions in Germany, warned a week ago that an inadequate supply of gas might bring "entire businesses" to their knees.

According to a report by Reuters, on July 7, France introduced a draft measure that would give the country the authority to requisition gas-powered generating plants.

According to Politico, Le Maire told reporters on Sunday that the country must be prepared to designate significant enterprises whose energy supply ought to be prioritized. Le Maire was speaking to reporters at the time.


                   Russia to shut down Nord Stream 1: Putin's gas offensive against the West | World News | WION




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