Halted Gas Supply from Russia Set to Rattle the EU

Share This Post

Russia has finally stopped gas supply to Europe via the Nord Stream 1 pipeline, as the economic battle between the Kremlin and Brussels assumes new dimensions. The move by Russia has intensified the prospects of recession and energy rationing in some of Europe’s largest economies.

With the Nord Stream 1 closed off for maintenance by Russian leading energy giant Gazprom, Russia will no longer supply fuel to Germany between August 31 and September 3. 

Data accessed via Nord Stream 1 official website shows that the company has not supplied any gas to Germany today, and things are expected to get worse in the coming days.

The EU is now worried that the Kremlin could extend the outage as it fights back against Western sanctions imposed on it for the invasion of Ukraine. While EU leaders have accused Moscow of using energy supplies to blackmail the EU into supporting its invasion, Russia has denied such claims.

If nothing is done to salvage the current situation, Europe’s energy crises will experience further setbacks, and gas prices could soar over the 400% increase we have seen so far. With energy prices rising astronomically, consumers may be forced to bear the brunt of the fallout between Europe and Moscow. 

Europe’s current realities 

While Germany continues to deal with worsening gas crises, its economy has also been battered significantly. Inflation in the country reached its highest level in nearly 50 years in August. Also, consumer sentiment is expected to hit an all-time low next month as consumers brace up for higher energy bills. 

While Gazprom announced last month’s maintenance months ahead, the upcoming maintenance was only announced two weeks ahead, giving the countries limited time to search for alternative options. More so, the latest maintenance is being handled by Gazprom instead of Nord Stream AG

Previously, Russia had slashed gas supply through the Nord Stream 1 to 40% in June and 20% in July, citing maintenance issues and heavy sanctions that have made it challenging to install faulty equipment. 

Gazprom stated that the latest outage is required to fix issues on the pipeline’s remaining compressor. Moscow has halted gas supply to Germany as well as Bulgaria, Finland, Poland, and Netherland for a while now.

Nitish Vaibhav
Nitish Vaibhavhttp://thetradingbay.com
Nitish Vaibhav is the Founder of the The Trading Bay. A computer science engineer turned an Entrepreneur 5 years ago. He has been in trading since 4 years in Forex and Crypto using his price action strategies. Involved in Content Creation full time for 3 years, Nitish is top rated writer on many content writing websites. He is also a YouTuber in India making videos about Crypto and Forex.

Related Posts

Forex Trading 101: 5 Mistakes to Avoid When Using Stop Loss

Being a crucial weapon in the arsenal of risk...

Wyckoff Accumulation Explained: Can You Trade Crypto With this Method?

Wyckoff accumulation signifies one aspect of the revolutionary Wyckoff...

Active vs Passive Investing: Weighing the Risks and Rewards

While the passive vs active investing debate is a...

How To Trade Using The Fibonacci Retracement Levels

Considering how often the market withholds them, Fibonacci retracement...

P2P Crypto Trading Explained: How Does it Work?

Peer-to-peer (P2P) crypto trading has become a major point...

The Power Of Multiple Time Frame Analysis In Forex

In order to succeed in the forex trading space,...
0
Would love your thoughts, please comment.x
()
x