Putin Warns the E.U. That Gas Supplies Could Keep Dwindling

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

Russian President Vladimir Putin has reiterated that it’s the fault of the Western government that the country’s supply of natural gas to European customers has shrunk. He warned that the situation will worsen if the West’s sanction against Russia continues.

Putin’s statement has further increased the pressure on the European Union. There are fears that Russia could stop the supply of gas, which could further cause untold hardship and political unrest in Europe in the winter.

Putin was addressing Russian reporters in Tehran while meeting with leaders of Turkey and Iran. He explained that if a turbine isn’t quickly replaced, Germany could lose about 30 to 60 million cubic meters a day’s supply of gas pumped through the Nord Stream pipeline.

The Russian president added that Russia may start using the recently completed Nord Stream 2 pipeline. However, he stated that it will only be working at a 50% capacity because the rest has been channeled to domestic needs.

Russia Warns The West Of Its Plans To Cap Oil Prices

The Western government is planning to cap Russian oil as part of the sanctions for invading Ukraine. However, Putin has warned that such a decision could impact oil prices and destabilize the global oil market.

“The result will be the same — a rise in prices. Prices will skyrocket,” Putin said, in response to the proposed plan to restrict Russian oil supply volume. Since Russian troupes invaded Ukraine, the Western governments have imposed a series of economic sanctions as a rebuttal to the country’s decision.

The EU has also approved bans on Russian moist oil and coal, which will be taking effect later this year. However, natural gas was excluded from the ban because the 27-nation bloc depends on it to heat homes, generate electricity, and power factories.

But Russia’s gas delivery to Germany has been reduced by 60%, with the Gazprom state-controlled natural gas giant citing technical issues. The company stated that the turbine Siemens sent to Canada for overhaul could not return because of sanctions. Although Germany and Canada have agreed to return the turbine, Gazprom stated that it has not yet received the documents.

About Ali Raza PRO INVESTOR

Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Invezz.com, Business2Community, BeinCrypto, and more.