Russia threatens Europe’s gas supplies as west mulls oil import ban over Ukraine invasion

Deputy prime minister raises prospect of closing Nord Stream 1 gas pipeline to Germany, and says rejecting Russian oil would be ‘catastrophic’ for world

Moscow has stoked fears of an energy war by threatening to close a major gas pipeline to Germany after the US pushed its European allies to consider banning Russian oil imports over its invasion of Ukraine.

In an address on Russian state television, Russian deputy prime minister Alexander Novak said: “A rejection of Russian oil would lead to catastrophic consequences for the global market”, and claimed the price of oil could rise to more than US$300 a barrel.

Ukrainian intelligence claimed that a Russian general has died in fighting around Kharkiv, the second such officer killed in a week. It broadcast what it said was a conversation between Russian FSB officers discussing the death of Maj Gen Vitaly Gerasimov, and complaining that their secure communications no longer functioned inside Ukraine.

Ukraine’s president, Volodymyr Zelenskiy, rallied the nation in a fresh late-night video address, saying that “heroic” resistance was making the war “like a nightmare” for Russia. Taking viewers on a tour of his quarters in Kyiv, he promised to stay in the capital until the war was won.

Several children were killed by Russian bombing in Sumy, according to the region’s military administration chief.

The humanitarian crisis continued to deepen, with 1.7 million Ukrainians thought to have fled the fighting, with the potential for the total to reach 5 million, the EU said. The UN human rights office has reported 406 confirmed civilian deaths but said the number was a vast undercount.

Zelenskiy is to address UK MPs on Tuesday via video link and is expected to plead for more arms and a no-fly zone over Ukraine to be enforced by Nato.

Dmytro Kuleba, Ukraine’s foreign minister, claimed the prospects of the country joining the EU had greatly increased, according to Ukraine’s Unian website. The distance to EU membership had been as far away as the moon last week, but was now only from Kyiv to the city of Vinnitsa – a distance of just 262km or 162 miles, he said.

Fresh talks between Ukraine and Russia are expected, after a third round ended without agreement on the evacuation of civilians via humanitarian corridors, although a Ukrainian negotiator said small progress had been made. The French president, Emmanuel Macron, accused Vladimir Putin of “moral and political cynicism” and hypocrisy for making promises to protect civilians so they could flee only to Russia.

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Oil prices soar 10% and stocks plunge as US and Europe consider ban on Russian crude

Brent crude jumped $20 to $139.13 at start of trading on Monday, with analysts predicting further increases

Oil prices have soared more than 10% and are closing in on their all-time high levels after the risk of a US and European ban on Russian crude threatened a stagflationary shock for world markets.

The global benchmark of Brent crude hit US$139.13 a barrel at the start of trading on Monday, a leap of more than $20 on Friday’s close of $118.03.

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Global shares tumble after Russian attack on Ukraine nuclear plant – business live

As reported earlier, Russian elites could have their property seized and handed over to Ukrainian refugees, Britain’s deputy prime minister has suggested.

Dominic Raab made the remarks as he defended the UK’s response to Moscow’s invasion of Ukraine and the prime minister, Boris Johnson, called for an emergency UN summit after a Russian attack on a nuclear power station in Ukraine.

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London Stock Exchange suspends 27 Russian listings; wheat prices soar to 14-year high – business live

The drinks giant Diageo, which makes Smirnoff vodka and Guinness, has paused exports to Russia and Ukraine. A spokesperson told Reuters:

Our priority is the safety of our people in Ukraine and the wider region.

The Institute of Directors expresses its solidarity with Ukraine and its people, who are facing intolerable suffering.

Although directors owe legal duties to the companies on whose boards they serve, they should also feel a stronger moral duty to uphold the fundamental values of freedom and democracy. We believe that it is no longer tenable for British directors to be involved in governance roles in the Russian economy. Therefore, we hope that they will now question the viability of their mandates in Russian and Belarusian companies.

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London Stock Exchange suspends trading in 27 firms with strong links to Russia

Energy and banking giants Gazprom and Sberbank plus EN+, Lukoil and Polyus among firms

The London Stock Exchange has suspended trading in 27 companies with strong links to Russia, including energy and banking giants Gazprom and Sberbank.

The LSE said it was moving to block trading in the companies, which also include EN+, Lukoil and Polyus, with immediate effect “in light of market conditions, and in order to maintain orderly markets”.

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US and 30 allied countries to release 60m barrels of oil amid price surge

The coordinated decision, only the fourth in the International Energy Agency’s history, comes as Russia continues Kyiv siege

The United States and 30 countries have agreed to release 60m barrels of oil from their strategic reserves to stabilise global energy markets, the US Department of Energy said on Tuesday, as oil prices surged to a seven-year high.

The move, ahead of Joe Biden’s State of the Union address to Congress, failed to calm fears about supply disruption from the Ukraine crisis and sanctions against Russia. US stock markets fell sharply even after the news.

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Mastercard blocks Russian firms; bitcoin rises after latest sanctions on Russia – business live

European stocks are falling again, but not collapsing... The UK’s FTSE 100 index has followed the rest of Europe and is now trading 11 points, or 0.15%, lower at 7,447, giving up earlier modest gains.

Germany’s Dax has lost 1% while France’s CAC and Italy’s FTSE MiB are 0.7% and 0.9% lower respectively.

Russia exposed stocks more mixed this morning: Polymetal, JPMorgan Russian Securities and Petropavlosk all lower again, whilst Evraz and Ferrexpo rallied a bit. The rouble has come off its lows and trades around 91 to the US dollar. At the moment it looks as though the Russian central bank is doing a not terrible job of supporting the currency, but through some pretty tough measures – massive rate hike and capital controls. How long can this last? First Switzerland and now even Monaco is kicking out Russian money!

As for Russia and Ukraine....the dreadful situation gets worse as heavy shelling of built-up areas shows us what is to come. Talks yesterday didn’t get far but the two sides have agreed to try again as a massive Russian convoy starts to encircle Kyiv. Bombing of civilians will harden Western public opinion against Russia – voters are already taking a pretty hard line across Europe. Unified public opinion complicates matters for governments who might prefer to base policy solely on the advice of their military intelligence and strategic advisors. But that is the way of things.

We think there is a clear financial as well as a moral case for divestment with respect to our Russian holdings.

Morals drive finance and if you are a financial investor and you don’t think about the moral impacts of what you are doing you are both shortsighted and, dare I say it, immoral.

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Shell to exit joint ventures with Gazprom and pull out of Nord Stream 2

Decisive move to end tie-up with Russian state gas firm follows BP pledge to sell its 20% Rosneft stake

Shell is to exit its joint ventures with Russian state energy firm Gazprom, a day after BP said it would offload its 20% stake in Kremlin-owned oil firm Rosneft, as British businesses scrambled to distance themselves from Vladimir Putin.

The oil company said it would “exit its joint ventures with Gazprom and related entities”, which are worth about $3bn.

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How can Europe wean itself off Russian gas?

Analysis: whether tapping other suppliers or switching energy sources, there is no quick and easy option to loosen Putin’s economic grip

As Boris Johnson told parliament that Europe must wean itself off Russian gas – to loosen Vladimir Putin’s “grip on western politics” – the Nikolay Zubov tanker was making its way back from British waters to the port of Sabetta, in northern Siberia.

The 300m-long vessel had recently dropped off a consignment of liquefied natural gas (LNG) at the Isle of Grain terminal, in the Thames Estuary, operated by the National Grid.

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Can Germany function without Vladimir Putin’s gas?

Analysis: Nord Stream 2 was meant to deliver 70% of country’s gas and switch to renewable energy has been slow

The Ukraine crisis has plunged Germany into an intense debate about how it will heat its homes and power its industry in future, summed up in the short question: can Europe’s largest economy function without Vladimir Putin’s gas?

The Green federal economics minister, Robert Habeck, answered with a decisive “yes it can”, a day after the chancellor, Olaf Scholz, announced the suspension of the Nord Stream 2 pipeline, which was meant to deliver from Russia as much as 70% of Germany’s gas requirements. There are considerable doubts as to whether the $11bn project will ever now go ahead.

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Energy prices surge as Russian invasion of Ukraine stokes fears of global shortages

European stock markets tumble as crisis fuels near-40% rise in gas price and pushes oil to $105 per barrel

Global markets were thrown into turmoil on Thursday as the arrival of war on European soil sent prices of commodities such as oil, gas and wheat surging, while stock market plunged.

The ramifications of a potentially prolonged conflict involving Europe’s primary supplier of gas sent a chill through markets, affecting prices across a phalanx of asset classes and investments.

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Why a swift economic victory against Russia looks unlikely

Analysis: country has positioned itself to blunt western sanctions and has a few retaliatory ones of its own

Be ready for a long haul. That was the subtext of Boris Johnson’s message to MPs as he committed to toughening up sanctions against Russia.

The warning to prepare for a “protracted struggle” was both timely and appropriate. There will be no quick knockout blow because Vladimir Putin has had time to prepare and is well dug-in.

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Europe could see out winter on gas reserves if Russian imports stop, says German analysis

Economic institute says current levels of gas enough for six weeks if mild temperatures continue

Europe could heat its citizens’ homes and power its industry on existing gas reserves for the remaining months of a relatively mild winter even if the standoff with Moscow over Ukraine were to escalate to a total stop on Russian gas imports, a leading German economic institute has said.

Unusually low gas reserves have raised alarm among several European governments in recent months, with storage tanks across the continent on average at only 31% capacity at the start of this week – roughly half as full as in 2020.

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Saudi Arabia transfers $80bn in shares to wealth fund for green projects

Crown Prince Mohammed bin Salman said move was part of efforts to recalibrate the oil-led economy

Saudi Arabia has transferred shares worth $80bn to its sovereign wealth fund as the oil-rich nation hopes to rival Norway and Singapore’s state-managed funds and invest in green projects.

Crown Prince Mohammed bin Salman, Saudi Arabia’s de facto ruler, said 4% of shares in Saudi Aramco, the world’s biggest oil exporter, would be transferred to the kingdom’s sovereign wealth fund as part of efforts to recalibrate the oil-dominated economy.

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Kyiv urges Russia to pull troops back from Ukraine border

Call comes after Nato stresses need for EU countries to reduce dependence on Russian natural gas

Kyiv has urged Moscow to pull back its troops from Ukraine’s border and continue dialogue with the west if it is “serious” about de-escalating tensions that have soared amid fears of a Russian invasion.

“If Russian officials are serious when they say they don’t want a new war, Russia must continue diplomatic engagement and pull back military forces it amassed along Ukraine’s borders and in the temporarily occupied territories of Ukraine,” Kyiv’s foreign minister, Dmytro Kuleba, tweeted on Sunday.

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US finalizing plans to divert gas to Europe if Russia cuts off supply

Officials working with global suppliers to avoid European gas crisis if flow from Russia is cut as Biden says he would consider personal sanctions against Putin

The US has helped prepare for the diversion of natural gas supplies from around the world to Europe in the event that the flow from Russia is cut, in an effort to blunt Vladimir Putin’s most powerful economic weapon.

As fears of an invasion of Ukraine have grown, US officials said on Tuesday that they had been negotiating with global suppliers, and they were now confident that Europe would not suffer from a sudden loss of energy for heating in the middle of winter.

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Kremlin denies restricting gas supplies to Europe for political gain

European gas prices climb close to record highs as flows on key pipeline move towards Russia

The Kremlin has denied using Russia’s gas resources to turn the screw on Europe, after gas in a pipeline to Germany switched direction to flow eastwards for a second day, keeping prices near record highs as midwinter approaches.

Flows through the Yamal-Europe pipeline to Germany declined over the weekend before stopping on Tuesday and reversing, data from the network operator Gascade showed.

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Gas crisis fuels call for UK to update energy security policy

As rising tensions with Russia over Ukraine drive prices to record highs, experts warn of lack of strategy for gas supply

Ministers are relying on an outdated energy security policy, leading academics have warned, as escalating tensions between Russia and western leaders propelled the gas market to record price highs.

UK gas reached a record closing price of 322.5 pence per therm on Tuesday, according to data from market price experts at ICIS, vaulting ahead of the previous high of just over 298p/therm set in early October this year.

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Gazprom profits as Russia prospers from Europe’s gas crisis

State-owned company accused of ‘selling as much gas as possible without lowering market prices’

Gas prices near record highs as Berlin rejects pipeline from Russia

About 12.7bn cubic feet of gas flowed into Europe from Russia’s state-owned Gazprom last month. The world’s largest gas producer typically supplies more than a third of the needs of countries across the European Union, but in November flows dwindled to a six-year low.

Gas supplies from Russia have fallen well short of pre-pandemic levels for months. The volumes of Russian gas flowing into homes, businesses and storage facilities this year have been almost a quarter below those in 2019.

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