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GAS CRISIS HITS EUROPE | SANCTIONS FAILURE | RUSSIA OWNS THE LIBS
Sanctions Failure! Russian Gas Cuts Set To Destroy Europe's Economy
The courage to speak the truth is a virtue!
The Kremlin has said that Russia will cut gas supplies to Europe from Wednesday in a move that is now known to crush economic hopes especially after Russia and Ukraine recently signed a wheat deal that allowed Ukraine to export grains from Black Sea ports.
Russia’s biggest gas company, Gazprom said that supplies from its Nordic Stream 1 pipeline to Germany would drop to just 20 percent. The gas company said that gas flows would drop to 33 million cubic meters per day from Wednesday which is a halving of the current, already reduced level.
Gazprom gave the reason for its decision as being the need to halt the operation of a Siemens gas turbine at a compressor station based on instructions from an industry watchdog. On her part, Germany said she saw no technical reason for the drastic reduction which is a significant blow to hopes that economic pressures had finally started easing Russia into making concessions.
A certain Dutch front-month gas contract called the European benchmark closed 9.95% higher following the news of the latest blow to Nord Stream 1. The pipeline is known to be the single biggest Russian gas link to Europe and has a capacity of 55 billion cubic meters a year.
The European Union has repeatedly accused Russia of resorting to energy blackmail on European countries in an effort to retaliate because of the sanctions imposed on it. But Kremlin has denied doing such, saying instead that the drops in gas supply have been caused by maintenance issues as well as Western sanctions.
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