icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
15 Jun, 2022 15:46

European gas prices spike as anti-Russia sanctions affect flow

Tariffs jumped by nearly 25% after Gazprom cut supplies via Nord Stream pipeline
European gas prices spike as anti-Russia sanctions affect flow

Prices for natural gas in Europe surged on Wednesday after Russian energy giant Gazprom announced plans for further cuts to supply volumes via the Nord Stream pipeline.

Futures on the Netherlands-based TTF trading hub climbed over $1,300 per 1,000 cubic meters, marking a surge of nearly 25%.

Earlier this week, prices in the region spiked by nearly 11%  after Gazprom said it was reducing gas deliveries via the Nord Stream pipeline after German company Siemens failed to return gas pumping units to its compressor station on time.

Overall gas flows via the Nord Stream pipeline will decrease by roughly 60%, from 167 million cubic meters per day to just 67 million cubic meters, according to Gazprom.

The Saint Petersburg energy giant said it was forced to reduce gas supplies to Germany via the Nord Stream pipeline this week due to the parts shortage. Siemens announced on Wednesday that it was impossible to deliver the gas turbines to Gazprom after they'd been repaired in Canada, due to the sanctions imposed on Russia.

It added that the German and Canadian governments were aware of the problem, and that it was working on a viable solution.

For more stories on economy & finance visit RT's business section