How is Russia choking Europe’s energy needs? | The Hindu

An energy crisis is brewing in Europe.

Gas prices have shot up exponentially in the past couple of months. Many economists fear that a recession might also be on the way.

A major reason behind this is Russia shutting the Nord Stream 1 pipeline – a cheap natural gas supply that Europe depended on for years.

Nord Stream is an export gas pipeline which runs under the Baltic Sea, carrying gas from Russia to Europe

It bypasses transit countries, making it highly reliable for European customers. It has two pipelines - Nord Stream 1 and Nord Stream 2.

The twin pipelines can transport a combined total of 110 billion cubic metres of gas a year to Europe for at least 50 years.

Two days before Russia sent its troops to Ukraine, Germany had halted the Nord Stream 2 gas pipeline.

On September 2nd, Russian gas giant Gazprom announced that the Nord Stream pipeline would be completely stopped until a turbine is repaired

This is not the first time that Gazprom is shutting the key pipeline. In July this year, Gazprom had halved the amount of natural gas flowing to Europe to 20% of capacity.

President Vladimir Putin has threatened to cut off energy supplies if price caps are imposed on Russia's oil and gas exports.

Europe requires more than 100 billion cubic metres of natural gas each year and around 40% of its gas comes from Russia

If Russia decides to cut supplies, it would affect the global energy markets and lead to higher energy prices.

Europe is not sitting idle. It has already lined up alternative gas supplies, including LNG from the US and pipeline gas from Norway and Azerbaijan.

Germany is keeping coal plants in operation that it was going to shut down to reduce greenhouse gas emissions.

The European Union has approved a plan to reduce gas use by 15% by next March. And now it plans to impose stricter restrictions on Moscow.

The G7 has agreed to implement a price cap on oil exports from Russia.

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