A top EU official told CNBC on Saturday that the European Union was “ready to react” to Russia’s decision to halt gas supplies to the bloc.
Russia’s state energy giant Gazprom on Friday announced an indefinite halt to gas flows to Europe via the Nord Stream 1 gas pipeline, citing the need for additional repairs.
The move comes after supply was halted last week for a planned “maintenance stop” that was expected to last until September 3.
“We expect that Russia will honor the contracts it has, but even if the weaponization of energy will continue or will increase in response to decisions,” said Paolo Gentiloni, EU economic commissioner. our decision, I think the Euoprean Union is ready to react.” .
“Of course, we have to save energy, we have to share energy, we have [a] the storage level is high and we’re not afraid of Putin’s decisions,” Gentiloni told CNBC’s Steve Sedgwick at the Ambrosetti Forum in Italy.
“We have asked Putin to honor their contract but if they don’t honor his contract we are ready to react,” he said, without detailing exactly what actions these could lead to. things.
Russian President Vladimir Putin smiles during a joint press conference with Italian Prime Minister Paolo Gentiloni after their meeting at the Bocharov Ruchei state residence in Sochi, Russia, May 17, 2017.
Yuri Kadobnov | Reuters
Gazprom said on the Telegram messaging app that inspectors had found an oil leak in the pipeline.
“The delivery of gas to the Nord Stream gas pipeline has been completely stopped until the equipment operation problems are eliminated” energy company said.
The gas shutdown comes after a tumultuous summer between Russia and the EU as the war in Ukraine continued, with Russia accused of “weaponizing” gas supplies to its European neighbors. to pressure the bloc to ease sanctions. Russia denies using energy as a weapon.
Gazprom has repeatedly said that the sanctions are preventing the company from efficiently maintaining and operating the pipeline and have reduced the amount of gas passing through the pipeline to about 20% of its full capacity.
Gazprom’s decision came hours after the Group of Seven economic powers agreed on a plan to impose price caps on Russian oil in an effort to limit Moscow’s oil revenues.
The shutdown of Russian gas supplies puts the EU in a difficult position as it enters autumn and winter.
Since Russia’s unprovoked invasion of Ukraine, the EU has sought to reduce and phase out Russian gas imports. However, while jostling for alternative supplies, it is still somewhat dependent on those supplies.
The bloc has called on all members to voluntarily reduce their respective gas consumption by 15% in the fall and through the winter months in order to provide supplies.
US Senator Lindsey Graham, also speaking to CNBC at the Ambrosetti Forum, said while the energy shortage expected next winter is “very inconvenient for Europe” it is not ” For the first time, the people of Europe must bear their freedom.”
“This is what I want to say to my European friends: We will work with you to find alternatives to Russian gas and we can get there as soon as possible,” he said. the safer the world and the more stable Europe will be.”
“The biggest blow to Putin’s war machine will be Europe’s energy independence. The day you get there, he’ll be his former shell.”
