StarAvisStarAvisStarAvis
  • Home
  • News
  • Business
  • Literature
  • Science

Archives

  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • February 2022
  • January 2022
  • December 2021
  • September 2021
  • July 2021
  • June 2021

Categories

  • Articles
  • Artificial intelligence
  • Arts & Design
  • Biography
  • Books
  • Business
  • Celebrities
  • Economy
  • Editorial
  • Entertainment
  • Entrepreneurship
  • Environment
  • Europe News
  • Fact check
  • Food
  • Geography
  • Health
  • Health Care
  • History
  • Internet
  • Lifestyle
  • Literature
  • Medication
  • Movies
  • News
  • Opinion
  • Personal Finance
  • Podcast
  • Politics
  • Science
  • SEO
  • Sports
  • Technology
  • Top 10
  • Travel
  • TV
  • U.K News
  • U.S. News
  • World News
Reading: Russia’s Gazprom tells Europe gas halt beyond its control
Share
Notification Show More
Aa
StarAvisStarAvis
Aa
  • World
  • Travel
  • Opinion
  • Science
  • Technology
  • Fashion
  • Home
    • Home 1
    • Home 2
    • Home 3
    • Home 4
    • Home 5
  • Categories
    • Technology
    • Opinion
    • Travel
    • Fashion
    • World
    • Science
    • Health
  • Bookmarks
  • More Foxiz
    • Sitemap
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
StarAvis > Latest > News > World News > Russia’s Gazprom tells Europe gas halt beyond its control
World NewsNews

Russia’s Gazprom tells Europe gas halt beyond its control

StarAvis Desk
Last updated: 2022/07/18 at 11:12 PM
StarAvis Desk Published July 18, 2022
Share
6 Min Read
SHARE

July 18 (Reuters) – Russia’s Gazprom has told customers in Europe it cannot guarantee gas supplies because of ‘extraordinary’ circumstances, according to a letter seen by Reuters, upping the ante in an economic tit-for-tat with the West over Moscow’s invasion of Ukraine.

The July 14 letter from the Russian state gas monopoly said it was retroactively declaring force majeure on supplies dating from June 14. The news comes as Nord Stream 1, the key pipeline delivering Russian gas to Germany and beyond, is undergoing annual maintenance meant to conclude on Thursday.

The letter added to Europe’s fears that Moscow could keep the pipeline mothballed in retaliation for sanctions imposed on Russia over the war in Ukraine, heightening an energy crisis that risks tipping the region into recession.

Known as an ‘act of God’ clause, force majeure is standard in business contracts and spells out extreme circumstances that excuse a party from their legal obligations.

Gazprom (GAZP.MM) did not respond to a request for comment.

Russian gas supplies have been declining via major routes for some months, including via Ukraine and Belarus as well as through Nord Stream 1 under the Baltic Sea.

The grace period for payments on two of Gazprom’s international bonds expires on July 19. (File photo via Reuters)

A trading source, asking not to be identified because of the sensitivity of the issue, said the force majeure concerned supplies through Nord Stream 1.

“This sounds like a first hint that the gas supplies via NS1 will possibly not resume after the 10-day maintenance has ended,” said Hans van Cleef, senior energy economist at ABN Amro.

“Depending on what ‘extraordinary’ circumstances have in mind in order to declare the force majeure, and whether these issues are technical or more political, it could mean the next step in escalation between Russia and Europe/Germany,” he added.

Uniper, Germany’s biggest importer of Russian gas, was among the customers who said they had received a letter, and that it had formally rejected the claim as unjustified.

Pipes at the landfall facilities of the ‘Nord Stream 1’ gas pipeline are pictured in Lubmin, Germany, March 8, 2022. (photo credit: REUTERS/HANNIBAL HANSCHKE/FILE PHOTO)

RWE (RWEG.DE), Germany’s largest power producer and another importer of Russian gas, also said it has received a force majeure notice.

“Please understand that we cannot comment on its details or our legal opinion,” the company said.

TURBINE DELAY

Gazprom cut the pipeline’s capacity to 40% on June 14, citing the delay of a turbine being maintained in Canada by equipment supplier Siemens Energy(ENR1n.DE).

Canada sent the turbine for the pipeline to Germany by plane on July 17 after repair work had been completed, Kommersant newspaper reported on Monday, citing people familiar with the situation.

It will take another five to seven days for the turbine to reach Russia, the report said, provided there are no problems with logistics and customs. Germany’s economy ministry said on Monday it could not provide details of the turbine’s whereabouts.

But a spokesperson for the ministry said it was a replacement part that was meant to be used only from September, meaning its absence could not be the real reason for the fall-off in gas flows prior to the maintenance.

Austrian oil and gas group OMV (OMVV.VI), however, said on Monday it expected gas deliveries from Russia through the Nord Stream 1 pipeline to resume as planned after the outage.

Flows through the pipeline are at zero as the link undergoes annual maintenance that began on July 11 and is meant to conclude on Thursday.

“Gazprom’s motivations are uncertain, but the declaration will not have a material impact on the current landscape,” said Zongqiang Luo, gas analyst at consultancy Rystad Energy.

The European Union, which has imposed sanctions on Moscow, aims to stop using Russian fossil fuels by 2027 but wants supplies to continue for now as it develops alternative sources.

For Moscow and for Gazprom, the energy flows are a vital revenue stream as Western sanctions over Russia’s invasion of Ukraine, which the Kremlin terms a “special military operation”, have strained Russian finances.

According to the Russian Finance Ministry, the federal budget received 6.4 trillion roubles ($114.29 billion) from oil and gas sales in the first half of the year. This is compared to planned 9.5 trillion roubles for the whole 2022.

The grace period for payments on two of Gazprom’s international bonds expires on July 19, and if foreign creditors are not paid by then the company will technically be in default.

($1 = 56.0000 roubles)

Follow us on Google News

You Might Also Like

NATO Chief Warns of Prolonged Conflict in Ukraine

Iranian Protests Mark the First Anniversary of Mahsa Amini’s Death

The Journey to Derna: A Tale of Devastation and Despair

Key Takeaways from the Vladimir Putin-Kim Jong-un Summit

Russia’s termination of agreement triggers warning on Black Sea grain shipments

Share This Article
Twitter Email Copy Link Print
Share
Previous Article Iran blacklists US officials for supporting ‘terrorist’ group MEK
Next Article Ranil Wickremesinghe elected Sri Lanka’s new president
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

You Might Also Like

NATO Chief Warns of Prolonged Conflict in Ukraine
News

NATO Chief Warns of Prolonged Conflict in Ukraine

NATO Secretary General Jens Stoltenberg issued a cautionary message, emphasizing that the war in Ukraine may endure for an extended…

4 Min Read
Iranian Protests Mark the First Anniversary of Mahsa Amini's Death
World News

Iranian Protests Mark the First Anniversary of Mahsa Amini’s Death

Iran witnessed widespread protests on Saturday as people commemorated the first anniversary of the tragic death of Mahsa Amini. The…

3 Min Read
The Journey to Derna: A Tale of Devastation and Despair
News

The Journey to Derna: A Tale of Devastation and Despair

Once a picturesque drive from Benghazi, the road to the Libyan city of Derna has become a haunting ordeal. Fields…

5 Min Read
Key Takeaways from the Vladimir Putin-Kim Jong-un Summit
Politics

Key Takeaways from the Vladimir Putin-Kim Jong-un Summit

Meeting in Russia's Far East Raises Concerns In a recent summit between Vladimir Putin and Kim Jong-un, the United States…

4 Min Read
StarAvis StarAvis White

News

  • World
  • Advertise

Technology

  • Innovate
  • Gadget
  • PC hardware
  • Review
  • Software

Health

  • Medicine
  • Children
  • Coronavirus
  • Nutrition
  • Disease

Culture

  • Stars
  • Screen
  • Culture
  • Media
  • Videos

More

  • Fashion
  • Travel
  • Opinion
  • Science
  • Health

Subscribe

  • Google News
  • Digital Subscription
  • Games
  • Cooking
Copyright 2011-2023 © StarAvis Network. All Rights Reserved.
 

Loading Comments...
 

    Welcome Back!

    Sign in to your account

    Lost your password?