Russia has indefinitely suspended gas flows through the Nord Stream 1 pipeline, exacerbating a squeeze on Europe’s energy supplies.
State-owned Gazprom, which was meant to restore operations on the Baltic Sea pipeline on Saturday after three days of maintenance, said the suspension was due to a technical fault.
The move comes hours after the G7 said they were pushing ahead with a plan to try impose a price cap on Russia’s oil exports as part of a bid to lower revenues flowing to Moscow that it can use to fund its war in Ukraine.
It will heighten fears in European capitals that Russia aims to further cut supplies ahead of the coldest months. Moscow has been accused of “weaponising” its gas to stoke a cost of living crisis in retaliation for western support for Ukraine.
“Gazprom’s announcement this afternoon that it is once again shutting down Nord Stream 1 under fallacious pretences is another confirmation of its unreliability as a supplier,” Eric Mamer, the European Commission’s chief spokesman, wrote on Twitter.
“It’s also proof of Russia’s cynicism, as it prefers to flare gas instead of honouring contracts.”
Russian president Vladimir Putin has made little attempt to hide his goal to undermine western sanctions and stop attempts by Ukraine allies to reduce their dependence on Moscow’s oil and gas exports.
Gazprom had already cut capacity on Nord Stream 1 since June, lowering volumes to just 20 per cent of normal levels and triggering a more than doubling in European gas prices.
The company said the shutdown was because of an oil leak discovered in the main gas turbine at the Portovaya compressor station near St Petersburg, which feeds the line that runs through the Baltic Sea to Germany.
After spiking last week to an all-time high, European gas prices have slid in recent days, declining by a third over to €209 per megawatt hour — though that is still about ten times the average level last decade.
Prices eased partly as the EU hit its target of filling storage sites to 80 per cent of capacity ahead of winter. But storage alone is not enough to meet winter demand without normal Russian export flows.
Germany and other large European economies aim to cut gas demand by 15 per cent to avoid severe shortages though may still need to introduce rationing. Blackouts are a possibility. Prior to the full-scale invasion of Ukraine Russia met about 40 per cent of Europe’s gas demand.
Additional reporting by Andy Bounds in Brussels