Ukraine crisis: Russia cuts gas supply to unit seized by Germany

Russia has cut natural gas supplies to a Gazprom unit seized by Germany in retaliation for Western sanctions over the war in Ukraine.

Gazprom Germania GmbH and its subsidiaries no longer receive all contracted volumes, German Economy Minister Robert Habeck said. Europe’s biggest economy and Russia’s biggest gas buyer receive gas from alternative sources and can weather the disruption, he said.

Moscow has banned relations with Gazprom Germania and its various subsidiaries now under the control of the German energy regulator. This includes energy supplier Wingas GmbH, a European gas storage company, the London-based commercial arm of Gazprom and EuRoPol Gaz, owner of the Polish section of the Yamal-Europe gas pipeline linking Russia to Germany.

Last month, Germany temporarily took control of Gazprom Germania to ensure security of supply.

Finland said on Thursday it would apply to join NATO ‘without delay’, with Sweden expected to follow as Russia’s invasion of Ukraine looked set to lead to the alliance’s very expansion Western military that Vladimir Putin aimed to prevent.

The decision by the two Nordic countries to abandon the neutrality they maintained throughout the Cold War would be one of the biggest shifts in European security in decades. Moscow called Finland’s announcement a direct threat to Russia and threatened retaliation, including unspecified “military-technical” measures.

Gas prices in Europe up 22% due to conflict

Natural gas prices in Europe surged following disruptions to a key transit route through Ukraine, and as Germany said, Russia was weaponizing the energy in a clash over the ‘supply.

The benchmark contract jumped more than 22%, with shipments from Russia via Ukraine expected to fall around 30% on Thursday following disruptions at a cross-border entry point due to war. Yet German Economy Minister Robert Habeck played down the impact, saying the cuts amounted to just 3% of imports. Bloomberg

No global oil shortage, says IEA in U-turn

The world will not run out of oil even with a drop in production from sanctions-hit Russia, the International Energy Agency (IEA) said on Thursday, in a reversal after predicting a possible “supply shock”. global”.

The IEA, after warning on March 16 that 3 million barrels per day (bpd) could be shut down from April, lowered that figure for the second time as it noted that only 1 million bpd had closed. disconnected. Accelerating production elsewhere and slowing demand growth due to shutdowns in China will prevent a big shortfall, the Paris-based IEA said. Reuters

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor

Christi C. Elwood