Russia’s Gazprom declares force majeure on gas supplies to Europe

LONDON –

Russia’s GazpromCustomers in EuropeIt cannot be guaranteed gas suppliesBecause of “extraordinary” circumstances toLet me know if you have received the letter. ReutersThe monetary tit-fortat is a way to up the ante. WestMore Moscow’sInvasion of Ukraine.

The July14 letter from the RussianState gasMonopoly saidIt was retroactively declared force majeure on suppliesDating starting June 14. TheThe latest news is here Nord Stream1. The key pipeline that delivers Russian gas to GermanyAnnual maintenance is required for all of the above. toFinal conclusion on Thursday. 

TheAdd letter to Europe’sFears that MoscowThe pipeline could be kept inactive as a retaliation against the imposition of sanctions on RussiaOver the war UkraineThe region is at risk of falling into recession due to an increased energy crisis.

Knownas an ‘act God’ clause, force majeureThis clause is standard in business contracts. It explains extreme circumstances that exempt a party from their legal obligations.

GazpromWe did not respond toYou can submit a comment.

Russian gas suppliesSince a few months, major routes have been in decline including via via Ukraine BelarusBoth through and in Nord Stream1 below Baltic Sea.

A trading source asking not todue to the sensitive nature the issue saidThe force majeureConcerned suppliesThrough Nord Stream 1.

“This sounds like a first hint that the gas supplies via NS1 will possibly not resume after the 10-day maintenance has ended,” said Hans van CleefABN senior energy economist Amro.

“Depending onWhat ‘extraordinary’Consider the circumstances. toDeclare the force majeureIt could be the next step in the escalation of tensions between political and technical issues. Russia Europe/GermanyHe said so.

Uniper, Germany’sThe largest importer Russian gasAmong the customers who were able to participate was? saidThey received a notice that the letter had been sent and it stated that the claim was officially rejected. 

RWE, Germany’sThe largest power producer, and another importer Russian gasAlso, saidIt has been awarded a force majeure notice.

“Please understand that we cannot comment on its details or our legal opinion,”The company said.

TURBINE DELIVERY

GazpromReduce the capacity of the pipeline to 40% on June14. Citing the delay in maintaining a turbine. CanadaEquipment supplier Siemens Energy.

CanadaThe turbine was sent to the pipeline to GermanyBy plane on July17 after repairs were completed Kommersant newspaper reported on MondayPeople familiar with the situation were cited.

ItAnother five will be required toThe turbine will be ready in seven days toReach RussiaThe report is available here saidAs long as there aren’t any problems with customs and logistics, it is possible. Germany’sMinistry of Economy said on MondayIt could not give details about the location of the turbine.

ButThe ministry’s spokesperson saidIt was a replacement part. toOnly be used from SeptemberIt is not possible to eliminate it as the reason for the decline in the stock market. gasFlows prior toMaintenance.

AustrianOil and gasHowever, group OMV said on MondayIt was expected gasDelivery starting from RussiaThrough the Nord Stream 1 pipeline toAfter the outage, resume your normal routine. 

“Gazprom’s motivations are uncertain, but the declaration will not have a material impact on the current landscape,” said Zongqiang Luo, gasAnalyst at consultancy Rystad Energy.

The European UnionSanctions have been imposed by the United States of America on Moscow… aims toStop using RussianBut fossil fuels are not required by 2027 supplies toFor now, continue to follow the development of alternative sources.

For MoscowAnd for GazpromThe energy flows are an important revenue stream WesternSanctions over Russia’sInvasion of UkraineThe following is a list of the KremlinTerms “special military operation,”Have strained Russian finances.

According toThe Russian Finance MinistryFederal budget received US$114.29 billion from oil and 6.4 trillion roubles gasThe first half of the year saw record sales. ThisIs it compared? toPlanned 9.5 trillion Russian Roubles for 2022.

ThePayments are subject to grace periods onTwo Gazprom’sInternational bonds expire on July19. If foreign creditors aren’t paid by the due date, then the company is technically in default.

(ReportingBy Julia PayneAdditional reporting by Christoph SteitzIn Frankfurt, Bozorg SharafedinIn LondonBy Nina ChestneyIn London; EditingBy David Goodman, Edmund Blair Barbara Lewis)