Russia Threatens To Restrict Gas Supply To The European Union

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Russia Threatens To Restrict Gas Supply To The European Union


Russia has threatened to cut off natural gas supplies to Europe via the Nord Stream 1 pipeline. This is in response to sanctions imposed over its invasion of Ukraine. It is feared that this threat will increase volatility in the energy market and push consumption prices even higher.

Deputy Prime Minister Alexander Novak said Russia has the right to take actions that reflect the sanctions imposed on the Russian economy

"But there has been no decision to shut down Nord Stream 1, and the pipeline is currently operating at full capacity," Novak said.

The comments came after a day of rumors on the European gas market. As a result, gas prices at one point jumped by almost 80% on fears of supply disruptions from Russia.


Europe's reliance on Russian energy has been a key factor in the continent's leaders' efforts to agree on how to respond to the Ukrainian invasion.

Last month, Berlin suspended the $11 billion Nord Stream 2 pipeline project, and European Union officials said they were working on a plan that could cut the bloc's import needs from Russia by nearly 80% this year.

But many EU politicians remain wary. This is one of the reasons why Germany rejected the proposal for a ban on oil imports.

German Chancellor Olaf Scholz said that Russia's oil and gas was considered very important for the European economy. About 40% of gas imports from the European Union and a quarter of its oil comes from Russia.

Novak said Russia had other options for selling its oil if the United States and the European Union banned Russian imports.

He warned that each move had consequences for world markets as prices had already soared to $300 a barrel or more.




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