Putin’s Power Play on Gas: Gazprom Claims Turbine

Updated on 07/18/2022 06:41

• Maintenance work on the Nord Stream 1 pipeline should be completed by Thursday.
• But one important turbine is still missing – the consequences for gas supply in Germany and across Europe.
• Even if Nord Stream 1 could eventually get back up and running, it’s unclear whether Kremlin boss Putin will turn the gas pipeline back on.

More news on the war in Ukraine can be found here

Russia’s energy giant Gazprom does not want to involve itself in energy supply in the future Deutschland and in other EU countries. Maintenance work on the Baltic Sea pipeline Nord Stream 1 – the most important supply route Russia To Germany – should be completed this Thursday (July 21).

But Canada is still missing a major turbine that has long been missing due to sanctions following Russia’s war of aggression against the United States. Ukraine He stopped. In Russia, no one expected maintenance to be reinstated on the last day. For gas supply in Germany and Europe has consequences.

“The reliable operation of the Nord Stream gas pipeline and the supply of European consumers depend on it,” Gazprom announced over the weekend. The company complains that there is no document from German company Siemens Energy confirming the return of the gas turbine. However, it is important for the Portovaya compressor station, which is essential for the operation of Nord Stream 1.

Before the ten-day maintenance work began, Gazprom cut gas flows through the pipeline by 60 percent. This added to already high gas prices.

Russia: Malicious glee in state media

Although emphasized Moscow In terms of maintenance, Russia intends to continue fulfilling its obligations as a gas supplier in the future. But the energy crisis in Europe has long revolved around the turbine, as it fears its absence after Russia Central government Can be used as an excuse to cut supplies altogether.

Almost every day, Russian state media gleefully report how the German federal government is calling for energy savings and spending billions to mitigate the social consequences of rapidly rising living costs because of the uncertainty surrounding Nord Stream 1. “We have not introduced any sanctions against us,” said a news anchor for Pervi Kanal TV station.

But when asked if the Kremlin boss Vladimir Putin Turning on the gas pipeline again, Moscow has no clear answer. The only thing that is clear is that Russia is more likely to shift the blame for potential difficulties. Gazprom repeatedly emphasizes that gas storage facilities in Europe are rarely full.

It’s always other people’s fault

The state-owned company also blames Ukraine because not even half of the potential daily delivery volumes are sent through the country’s transport network. Ukraine, despite Moscow’s war of aggression, pumps about 40 million cubic meters of gas to Western Europe every day and wants it. EU Fully delivered by delivery from Russia. The Yamal-Europe gas pipeline was also shut down because Poland refused to pay for gas in rubles, as Putin had demanded.

From the Russian point of view, other people are always to blame for the problems. In view of the energy crisis with high prices and uncertain supply, Moscow reminds us that there is a very simple solution to the situation: Nord Stream 2. The gas pipeline was completed, but never became operational due to the war in Ukraine. Putin explained that supplies through this line could once again lower prices and ease the overall situation.

Many experts agree that Russia has no interest in what appear to be side-breaking deals in the conflict. Other major customers, such as China or Turkey, are also supplied via newly built gas pipelines, which could cast doubt on Russia’s credibility if energy superpower Europe turns off the pipeline. Russia has long had a reputation for using its energy as a “geopolitical weapon”.

On the other hand, those on good terms with Russia – Serbia, Hungary and above all neighboring Belarus – can traditionally count on friendly gifts. China also gets gas at significantly lower prices than the West.

Moscow depends on gas revenue

Some politicians in Moscow want to shut off gas pipelines to EU countries because of the West’s anti-Russian policy. It is said everywhere that the West was able to build its prosperity in this way only on the raw materials of Russia. Growth may now finally be halted and pushed back.

Nevertheless, Russian energy and finance expert Marcel Salikov points out that Moscow relies on revenues from gas sales and uses them to finance its national budget. The quantities sold to Europe cannot simply be diverted and sold elsewhere at prices customary in the West. “It can’t be diverted to China either. There are no gas pipelines with free capacity,” says the head of the Moscow Institute of Energy and Finance at the School of Economics.

In addition, Russia’s gas liquefaction plants are working at full capacity. Salicho says that if the gas pipeline is shut off, the country will have to significantly reduce its production levels. “But even that isn’t that easy.” Is it better to supply the domestic market with surplus quantities? The expert explains that two-thirds of the gas produced in Russia is already used in the country. Simply increasing consumption is not possible.

Pressure to allow attention

Many production facilities in Russia have already been shut down due to Western sanctions. While poor connection to the gas network of people in rural areas is sometimes a problem in Russia, experts don’t expect expensive lines to be installed everywhere all of a sudden. Gazprom thus earns less than exports.

So Russia’s goal should be to continue to deliver to the EU, albeit on clearer terms. Last but not least, sanctions should end pressure on the war in Ukraine. Any sanctions ignored by the West are celebrated as a victory in Moscow. More recently, Putin forced many buyers in the European Union to pay rubles for Russian gas. Gas turbine to return to Russia despite sanctions That could give Germany hope, writes the Moscow newspaper Kommersant. “But there is no guarantee that deliveries will resume.” (dpa/dh)
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