G7, EU to ban resumption of Russian gas pipelines

Negotiators say the G7 and EU plan to ban Russian gas imports along routes where Russia has cut supplies, with pipeline gas trade blocked by Western powers only after an invasion of Ukraine. It will be the first time since.

The decision, which is expected to be finalized by G7 leaders at their summit in Hiroshima next week, will see Russia’s pipelines and pipelines on routes to countries such as Poland and Germany cut off supplies last year, sparking an energy crisis. This would prevent the resumption of gas exports. all over Europe.

The West hopes to keep Russia from receiving increased energy revenues in an attempt to increase economic pressure 15 months after Russia’s energy policy. Full-scale invasion of Ukraine.

One of the officials, who spoke on condition of anonymity, said the move was “to ensure that our partners don’t change their minds in a hypothetical future.”

A draft G7 statement obtained by the Financial Times said the group of major economies would at least further reduce the use of Russia’s energy sources “including preventing the reopening of paths previously cut off by Russia’s energy weaponization.” rice field. Conflict”.

While the measure is unlikely to affect gas flows in the near term, it underscores Brussels’ deep determination to perpetuate Russia’s rapid and painful transformation from decades of energy dependence. is.

The ban is highly symbolic, as early in the war the EU avoided targeting pipeline flows given Moscow’s heavy dependence on gas. Russia cut supplies anyway, and gasoline prices soared more than 10 times normal.

But prices have fallen sharply in recent months as Europe has cut winter demand, accelerated its adoption of renewable energy and secured alternative sources of supply such as LNG for seaborne shipments.

Russia’s share of European gas imports fell from more than 40% to less than 10%, and a warm winter boosted gas storage in the EU.

Officials believe gas storage facilities are already about 60% full, but about 30% in the same period in 2022 will reach full capacity long before next winter arrives.

“Given that European gas reserves are unusually high for this time of year and that wholesale prices are slowly returning to what is considered a normal price range, European leaders believe that this plan will reduce supply for the foreseeable future. You can understand why we are confident that safety will not be compromised,” said Tom Marzek-Manser of energy consultancy ICIS.

“Nevertheless, it is important not to get too complacent about the outlook for the European gas market.”

Oil pipelines to which Russia has cut supplies, including the northern section of the Druzhba line that supplies refineries in Germany and Poland, could also be cut off under EU measures to prevent resumption of supplies.

The embargo is being discussed among diplomats as part of the EU’s 11th sanctions package. The commission said it does not comment on sanctions discussions or information leaks.

An EU diplomat said the proposal needed further clarification from Brussels to show how the “status quo” would change, especially as some of Kazakhstan’s oil is routed through Druzhba. rice field. “We need to clarify exactly how it works,” they said.

Berlin and Warsaw, despite exemptions from sanctions on Russian oil, continued to receive supplies until Russia cut off supplies in February, but last year voluntarily cut crude supplies through Druzhba. announced to stop. German refiners have stopped ordering Russian crude since the beginning of the year.

Part of Russia’s main gas pipeline to Europe – nord stream 1 and 2 The pipeline was destroyed last year and only one of the four pipelines remains. However, other pipelines, such as the Yamal line to Poland, remain intact.

https://www.ft.com/content/3568257b-9ab9-43b0-be96-04828b375fa2 G7, EU to ban resumption of Russian gas pipelines

Exit mobile version