By Julia Payne
LONDON, July 18 (Reuters) – Russia’s Gazprom has told customers in Europe it cannot guarantee gas supplies because of “extraordinary” circumstances, according to a letter seen by Reuters, upping the ante in an economic tit-for-tat with the West over Moscow’s invasion of Ukraine.
The Russian state gas monopoly said in a letter dated July 14 that it was retroactively declaring force majeure on supplies from June 14. The news comes as Nord Stream 1, the key pipeline delivering Russian gas to Germany and beyond, is undergoing 10 days of annual maintenance scheduled to conclude on Thursday. read more
The letter added to fears in Europe that Moscow may not restart the pipeline at the end of the maintenance period in retaliation for sanctions imposed on Russia over the war in Ukraine, heightening an energy crisis that risks tipping the region into recession.
Known as an “act of God” clause, force majeure is standard in business contracts and defines extreme circumstances that release a party from their legal obligations. The declaration does not necessarily mean that Gazprom will stop deliveries, rather that it should not be held responsible if it fails to meet contract terms.
Gazprom (GAZP.MM) did not respond to a request for comment.
Russian gas supplies have been declining via major routes for some months, including via Ukraine and Belarus as well as through the Nord Stream 1 pipeline under the Baltic Sea.
A trading source, asking not to be identified because of the sensitivity of the issue, said the force majeure concerned supplies through 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 Cleef, senior energy economist at ABN Amro.
Gazprom cut Nord Stream 1 capacity to 40% on June 14, the date that Gazprom said in the letter to buyers would be the start of the force majeure.
Gazprom blamed sanctions for that reduction, citing the delay in the return of a gas turbine from maintenance in Canada by equipment supplier Siemens Energy (ENR1n.DE).
Canada sent the turbine for the pipeline to Germany by plane on July 17 after repair work had been completed, Kommersant newspaper reported on Monday, citing people familiar with the situation.
It will take another five to seven days for the turbine to reach Russia, the report said, provided there are no problems with logistics and customs. Germany’s economy ministry said on Monday it could not provide details of the turbine’s whereabouts.
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The Most Revolutionary Act 
The self-enriched in Brussels are happy now, as they couldn’t have missed to predict this and avoid the upcoming situation. They are not that stupid, just undiagnosed. [/sarc]
Or would they quote the previous PM in Sweden (he did a ‘Boris’ few weeks ago) – his favorite expression – “We didn’t see it coming” – meaning that the politicians didn’t bother, while many among the population did and warned well ahead …
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I think everyone saw it coming, Sasjal. That it’s all according to plan. As I understand the plan is to crash the global economy as the banking elite did in 1929 with the goal of bringing in a global fascist regime. The new name for the fascist technocratic regime they want to install is the Great Reset. The World Economic Forum has been extremely open about their goals.
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They had to have seen this coming. I don’t know why European countries continue to be a doormat for the U.S. because it is only causing them severe issues. So, has Biden told the leaders of all European countries that the U.S. is going to build a pipeline from the U.S. to Europe to replace what Russia is not going to be delivering? Because he’s certainly giving Ukraine all of the money that the U.S. does not have since our debt is waaaay up in the trillions and we’ve got a homelessness situation that is so out-of-control, there is no help for it. The food banks over here are stating that they are going to have problems meeting the demand in the not so distant future. The rich leaders of all the countries will have no problems, but their citizens are in for it. We all are.
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It’s all very concerning, Shelby. I guess all we can do now is to prepare by getting together with like minded neighbors to set up survival preparedness networks to do what we can to grow food and setting up some way to distribute food, water, firewood etc. I’m lucky to live in a semi-rural area where it’s possible to grow some food year round. The situation would be pretty hopeless in a big city.
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