Russia’s decision to suspend the operation of its Nord Stream 1 pipeline has given rise to fear about the prospects for gas prices as the European economy has taken one hit after the other due to the Western sanctions on Moscow.
Gas supplies via Nord Stream have completely stopped since August 31st and the operation of the pipeline has been suspended due to scheduled maintenance work at the Portovaya compressor station, data from gas transportation system operators showed.
Meanwhile, the British economy has taken on another level of deterioration, with an increasing number of UK manufacturers saying they were already cutting production or cutting off employees due to the soaring energy bills.
Previously, Gazprom said gas would continue to flow on Saturday after a different turbine repair was required. However, Western sanctions have made it difficult for the energy company to pursue its maintenance routine.
Some 13% of businesses surveyed by Make UK, the top manufacturing industry trade body in Britain, said they were decreasing their hours of operation or procrastinating production until energy prices cool down, 7% said they were cutting production by long periods of time, and 12% said they fired employees to cope.
Prices all over Europe have been inflated by almost 400% due to the restricted gas flow from Russia, with expectations that they increase further after Moscow went back on its decision to continue pumping gas through Nord Stream 1 to Germany due to maintenance issues.
The United Kingdom was importing some 4% of its gas and 8% of its oil from Russia, but a few days ago, London revealed that it had no energy resources coming from Russia at all for the first time following the deterioration of ties with Moscow in light of the Ukraine war.
Thirteen EU nations have either ceased getting Russian gas entirely or are only receiving a portion of it due to the temporary blockage of the Nord Stream pipeline 1, the Russian TASS news agency reported last week.
The UK and the rest of Europe are incomparable, as Britain is not as dependent on Russian energy, though markets in the EU have largely affected the country’s prices.
Source: Agencies (edited by Al-Manar English Website)
