It is one of the first times that Vladimir Putin directly linked the energy price crisis, which grips European households and industry, with the controversial Nord Stream 2 gas pipeline. During his speech at the Valdai Discussion Forum in Sochi, And while EU member countries were divided on how to deal with the crisis, the Russian president said that as soon as the German regulator d cubics will start the day after tomorrow, “Putin said on a televised forum.
This Monday the operator of the gas pipeline between Russia and Europe, which passes through the Baltic Sea avoiding Ukraine, announced that it was ready to pump gas, after having started to fill it with “technical gas”, necessary to maintain pressure and begin the transport of gas.
Putin assured that the second section of the gas pipeline will be filled with gas by the end of the year with a total capacity of 55,000 million cubic meters of gas. A figure that sounds like heavenly music in a Europe with its reserves at the lowest level.
As he did last week, Putin defended that Russia has increased supply to Europe, rejecting accusations that they are using the gas supply as a political weapon to boost the Nord Stream 2 gas pipeline.
He also blamed the European Union and its energy market once again for the skyrocketing energy prices. Putin sees the EU’s decision to rely on an unstable energy market instead of signing long-term supply agreements, the preferred option for Russia and its energy company Gazprom, to be a mistake.
Speaking to the NS2 chain, Putin was more explicit in attacking the “philosophy of the European Commission”, which is convinced that energy markets “are regulated in the stock market, through the spot market”: “What we see today in energy markets (…) is the expression of a capitalism that no longer works, “he said. “They wanted to convince us of the need to give up long-term contracts.”
The perfect storm of the energy price crisis in Europe, with price rises of up to 150%, has been triggered by a mix of factors, among the main ones:
- The fast increased global demand gas after pandemic restrictions.
- The gas reserves in Europe were at the lowest after a long cold winter and have not been filled during the summer, when prices have already started to rise.
The European electricity market depends on the prices of the gas.
The rules of European energy market they prevent Member States from having room for maneuver, including the Commission.
The increase in prices of European CO2 emission rights of the industry. Some sectors criticize speculative movements.
Lack of agreement between the Member States and the European Commission to take joint regulatory measures like buying gas
Some analysts assure that Russia has been “playing” with supplies to defend the need for the Nord Stream 2 gas pipeline.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.