Russia cuts off gas exports to Europe via Nord Stream indefinitely — Winter has come

It is going to be a long winter for Europe this year. In a development that will worsen Europe's energy crisis, Russia has stopped all gas deliveries to Germany for an indefinite period. Gazprom – the Russian state-owned energy giant – has said that the Nord Stream 1 pipeline has developed a snag, after problems were supposedly found in a key piece of equipment. The pipeline was due to be opened over the weekend. However, Gazprom announced on Friday just ahead of the reopening that the pipeline would remain shut until a turbine is repaired.

As was to be expected, the European countries have cried foul over indefinitely suspending gas supplies, and accused Moscow of engaging in economic warfare. Russia is the biggest supplier of gas for the continent which is bracing for a cruel winter.

Before Kremlin launched the attack on Ukraine in February this year, Russia supplied at least 40 per cent of Europe’s gas supplies. Since the attack and subsequent criticism and reactions by American allies, Russia systematically began cutting off gas supplies to ensure that countries — including Italy, Austria, the Czech Republic, Slovakia, Poland, Bulgaria, France and the Netherlands — are not able to fill their gas storage before the winter or ramp up the imports of liquefied natural gas (LNG) in certain countries including Germany, as a measure to hinder their efforts in preparing for the upcoming winter.

However, the alternatives to Russian gas are limited and phenomenally expensive. While on one end, the European governments have been negotioating with the US sending LNG, they have also been trying to get more piped gas from Norway and Azerbaijan. Not just this, Europe has also been trying to ramp up the use of renewable energy. According to figures quoted in a report by The Guardian, the Office for National Statistic, goods exports to the EU rose for the third consecutive month to £16.4bn in April, driven by gas and crude oil shipped to the Netherlands and Ireland. This is the highest monthly level in current prices since comparable records began in 1997.

In case, the European countries are not able to find the sustainable alternative for Russian gas, the most likely and logical outcome will be that the countries will be forced to scale back on the energy they consume. Businesses will take a hit, as will the economy, for instance, Germany – where 35 per cent of the gas imports come from Russia – will have squeeze down its energy-intensive industries such as steelmaking and limit the production. There are only two options available — either the European governments impose limits on energy usage, or the price shoots through the roof so much that it becomes unviable and uneconomic to use gas. However, while the gas supplies for businesses could be cut, what about the households? Do the governments have a contingency plan, considering this situation is unprecedented? Even during the Cold War, the USSR was a reliable partner for supplying energy. However, with the equations frayed and fraught over the war on Ukraine, Europe must brace itself for a long and harrowing winter ahead.