Thursday, May 12, 2022

"Europe's gas supply crisis grows after Russia imposes sanctions"

From Reuters via Yahoo Finance, :

Pressure on Europe to secure alternative gas supplies increased on Thursday after Moscow imposed sanctions on European subsidiaries of state-owned Gazprom and Ukraine stopped a gas transit route, pushing prices higher.

Russia imposed sanctions late Wednesday mainly on Gazprom's European subsidiaries including Gazprom Germania, an energy trading, storage and transmission business that Germany placed under trusteeship last month to secure supplies.

It also imposed sanctions on the owner of the Polish part of the Yamal-Europe pipeline that carries Russian gas to Europe.

Kremlin spokesperson Dmitry Peskov said there can be no relations with the companies affected nor can they take part in supplying Russian gas.

The entities on a list of affected firms on a Russian government website were largely based in countries that have imposed sanctions on Russia in response to its invasion of Ukraine, most of them members of the European Union.

Germany, Russia's top client in Europe, said some subsidiaries of Gazprom Germania were receiving no gas because of the sanctions, but are seeking alternatives.

"Gazprom and its subsidaries are affected," Habeck told the Bundestag lower house. "This means some of the subsidiaries are getting no more gas from Russia. But the market is offering alternatives."

The list includes Germany's biggest gas storage facility at Rehden in Lower Saxony, with 4 billion cubic metres of capacity and operated by Astora, as well as Wingas, a trader which supplies industry and local utilities....

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