La Russia still cuts gas flows and uses it as a weapon of blackmail, seeking to disrupt markets and drive up prices to finance its war. “Gas flows to Europe through the Nord Stream1 could be suspended» is the latest announcement from Moscow. Because Putin knows that, without a ceiling on the price so requested by Draghi, every time he even partially turns off a tap, the price soars. The result? Skyrocketing gas prices on the Amsterdam hub, the reference market for Europe: natural gas reached a peak during the day at 142 euros per megawatt hour (+18%) from Gazprom's announcements. A level that had only been surpassed at the beginning of the war in Ukraine, on February 24th.
Russia: new cuts in gas supplies to Europe:
I cuts in supplies to the EU they escalate. And the fallout is coming to Italy. Eni has anticipated by asking and obtaining an increase in supplies which, in fact, seeks to undo the Russian move.
According to an Eni spokesman, "faced with a daily demand for gas by Eni that is approximately 44% higher than that made yesterday - an increase due to the recovery of quantities not received and normal commercial dynamics - Gazprom has announced that it will be delivered only 65% of the supplies requested (the quantities delivered will therefore be slightly higher than yesterday and will settle at an absolute level of around 32 million cubic metres/day)”.
At the same time, however, news arrives from Russia that gas supplies to Russia could be completely cut off Germany, officially due to technical problems with the pipeline North Stream. The brings it back English Guardian newspaper, quoting when the Russian ambassador to the EU, Vladimir Chizhov, told the Novosti news agency.
After the cuts decided over two days, the Kremlin's strategy appears increasingly clear. Above all because these cuts have targeted the two countries most dependent on Russian methane flows, Italy (actually according to data from theAeneas the share of Russian gas has fallen below 24% on average from 40% in 2021) and Germany, but also those that have the greatest capacity to accumulate reserves in view of the winter.
This translates into economic difficulties for the Old Continent and an increase in the energy tax paid to Russia with which it finances its war in Ukraine. In fact, the export of gas and oil has allowed Russia to collect, in the first four months of 2022, 90% more than in 2021, while companies (primarily Gazprom) line their pockets.
All this just in the days when the European leaders (Draghi, Macron and Scholz) organized their first visit to Kiev. Today 16 June, the French president, the German chancellor and the Italian premier will meet the Ukrainian president Volodymyr Zelensky before the G7 meeting at the end of June.
The gas price war: Moscow's cuts to the West
In Moscow's sights is the North Stream, the gas pipeline that passes under the Baltic Sea connects Russia and Germany, a symbol of Europe's energy dependence. In just two days there was a cut of 100 million cubic meters out of 167 (60% in two tranches) and it could not end there: as has been said, Russia has warned that flows to Europe via Nord Stream could be totally suspended. According to the Russian agency Tass, it would be a technical problem linked to the lack of spare parts for the Siemens turbines, blocked in Canada due to the Western sanctions (which actually don't hit the Kremlin that hard and have a boomerang effect on us). But for the German vice-chancellor Robert Habeck there are no doubts: it is a question of political motivations: “It could be a coincidence. Or there may be other reasons, but this is mere speculation."
Previously, Russia had completely or partially cut supplies to the Northern European countries (Poland, Finland, Bulgaria and Denmark) who had refused to pay in rubles.
The result of this strategy is clear: to raise tension just as the European leaders – Draghi, Macron and Scholtz are in Kiev at Zelensky's – and also to transform the war into a price war, with increasingly evident repercussions on inflation. A weapon that scares the markets as much as the Fed's restrictive policies
