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”.
Continue reading...Sanctions debate rapidly heading towards energy sanctions in Ukraine-Russia crisis
At the start of Russia’s invasion of Ukraine a week ago, almost every analyst agreed that Russian oil and gas would keep flowing westwards. The state of mutual energy dependence seemed too entrenched. On one side, the EU could not decouple itself easily from the source of 38% of its natural gas imports. On the other, Russia under financial sanctions would need cash. Old hands reflected that, even in the long decades of the cold war, the Soviet Union and Europe maintained commercial relationships in energy.
A week later, such thinking looks naive. The “shock and awe” financial sanctions, especially those aimed at Russia’s central bank, exceed anything previously seen, but the shortcoming is obvious: if you really want to hit the Russian economy hard, the place to aim is its energy export sector, a part that has been spared sanctions so far and generates hundreds of millions of dollars daily. The point is made repeatedly by Ukrainian officials in their appeals for the trade to cease, and its moral force is hammered home with every fresh Russian atrocity.
Continue reading...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.
Continue reading...Gazprom’s $11bn project to deliver gas from Russia to Germany seems impossible to abandon and impossible to carry forward
The saga of Nord Stream 2, the gas pipeline between Russia and Germany running along the Baltic seabed, has been stuck so long it has been likened to a suitcase at an airport without a handle – impossible to abandon, and impossible to carry forward. Most of the original cast of characters – Jean-Claude Juncker, Angela Merkel, Matteo Renzi, David Cameron, Petro Poroshenko – have left the political stage. Only one politician has survived the entire story: Vladimir Putin, the Russian President, and the master of divide and rule.
First announced in 2015, the $11bn (£8.3bn) pipeline owned by Russia’s state-backed energy giant Gazprom has been built to carry gas from western Siberia, doubling the existing capacity of the Nord Stream 1 pipeline and keeping 26m German homes warm at an affordable price.
Continue reading...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.
Continue reading...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.
Continue reading...Some believe Kremlin sees gas prices as chance for Gazprom to pressure west to speed up Nord Stream 2 approval
The natural gas market has entered uncharted territory. The movements in the price of gas on Wednesday had been, in the words of one analyst, “unprecedented since the year dot of gas liberalisation in Europe”. In record swings, Dutch wholesale gas, a European benchmark, soared by 30% within one period of three or four hours from an already eye-watering level.
These are chilling numbers for European governments with winter stretching ahead, and when the EU sneezes, the UK, heavily reliant on imports from across the Channel, also catches a cold.
Continue reading...Deputy PM calls for rapid clearance from German regulator after prices reach an all-time high
Russia’s deputy prime minister has said certification of the Nord Stream 2 undersea gas pipeline, which is awaiting clearance from Germany’s regulator, could cool soaring European gas prices.
Prices have risen sharply in response to a recovery in demand, particularly from Asia, with storage levels low.
Continue reading...No cause for alarm now, says Kwasi Kwarteng as energy discussions are likened to early Covid crisis talks
The government was scrambling on Saturday night to reassure Britons that rising gas prices would not plunge the country into an energy crisis, as ministers held a series of emergency meetings with energy companies and regulators to establish whether the nation could keep the lights and central heating on this winter.
A senior industry insider likened the meetings held between the business secretary, Kwasi Kwarteng, and energy industry leaders to the early crisis talks held following the outbreak of Covid-19.
Continue reading...Concerns had been raised over project increasing German reliance on Russian energy
Donald Tusk, the president of the European council, called it a mistake, while the US president, Donald Trump, has branded it very inappropriate and a “very bad thing for Nato”.
The Nord Stream 2 pipeline to take Russian gas to Germany is arguably Europe’s most controversial energy project, drawing opposition from Ukraine, which it will bypass, and uniting the US, eastern EU states, and the European Commission which fears it will undermine the bloc’s ‘energy union’ plans.
Continue reading...