Alexei Miller, the boss of the Russian gas company Gazprom, defended on Thursday, June 16, his group’s choice to continue reducing its supplies to Europe in the wake of the Russian invasion of Ukraine and Western sanctions against Moscow.
“Our product, our rules. We do not play by the rules we do not create.”Miller told the St. Petersburg Economic Forum. “Russia is a reliable energy supplier to Russia’s friends”He added.
Russia’s gas exports to Europe, including Germany, have been steadily declining since the start of Western sanctions against Moscow. Gazprom cut gas supplies to Italian group ENI by 15% on Wednesday, citing technical problems, and the Italian company announced on Thursday that it would supply only 65% of the amount requested. This will provide less gas to the Austrian group OMV.
Interruption in some deliveries
If the EU seeks to get rid of Russia’s dependent energy, Gosbrom will be at the forefront of disrupting gas supplies to many European customers who refuse to pay in rubles, as the Kremlin now demands.
Gosbrom has added a 60% drop this week to the supply of gas to Europe via the North Stream gas pipeline, which is being blamed on difficulties in the German group Siemens’ turbines due to Western sanctions. “There is no way to solve today” In this situation, Mr. Miller, promised “Siemens is quiet”.
“Yes, supply to Europe is low”Promised that “In the future, the demand for liquefied natural gas (LNG) in the Asia-Pacific market will increase”. He sent a nail to the Europeans, promising the latter “Long-term contracts are not necessary, so they are not needed … we have fulfilled our obligations to you”.
Rising gas prices
Revenue from Russia has not been affected by this fall in supplies due to rising gas prices. Therefore, the Kremlin never guaranteed that the decisions of European leaders would affect their own people.
Gas prices continued to rise on Thursday, triggered by a sharp drop in supplies from Russia, while oil continued to fall, worrying that a possible recession could undermine demand.
At 4:20 pm in Paris, the Dutch TTF became the standard for natural gas in Europe, at 134.30 euros per megawatt hour (MWh). TTF has risen more than 60% since Monday, approaching 150 euros per MWh on Thursday. Such prices have not been recorded since March, when natural gas paid off to an all-time high. After a high of 315.07 pence since Monday, British gas has been rising at 282 pence per unit temperature.
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