Russia has reduced the flow of natural gas to Germany, further hurting Europe’s efforts to
stockpile energy products before winter arrives.
Russia announced that state-owned Gazprom will cut shipments of natural gas through the
Nord Stream pipeline, which is the main gas link to the European Union, to about 20% of its
capacity starting on July 27.
Russia blamed the latest reduction on maintenance issues related to a turbine that helps pump
gas into the pipeline.
However, Russia has not said how long the reduced gas flows will remain in place, raising
concerns ahead of the colder winter months.
Europe is already grappling with an energy crisis, which has been exacerbated by Russia’s
invasion of Ukraine.
Natural gas prices surged 12% on news of the reduced flows to Europe. Gas futures are already
sitting at seasonal records for this time of year.
A further reduction in Russia’s natural gas supplies to Europe could mean additional cuts to gas
consumption, with some industries reducing output or shutting facilities to conserve energy.
If Nord Stream flows are cut off completely, Europe’s natural gas in storage is forecast to run
out by the end of next February, according to industry consultant Wood Mackenzie.
