Russia is cutting down its supply of gas through Nord Stream 1
The Executive Headlines
Nord Stream 1, a set of offshore natural gas pipelines in Europe that runs under the Baltic Sea from Russia to Germany, is not going to supply the same amount of gas it used to supply before. According to Robert Habeck, Germany's economy minister, through this step Russia is aiming to show uncertainty and make Germany presume about raising fuel prices.
Though the blame was first put on undergoing maintenance in Canada, the second cut down of supply made the point clear. Nord Stream 1, will run at just 40% of its capacity. After the second cut Robert Habeck said, "The Russian side's argument is simply a pretext. It is obviously a strategy to unsettle and drive up prices,"
The problem being faced by Germany
Russia is making it difficult for Germany to fill its gas storage. Germany's gas storage is needed to be 80% filled in October and 90% filled in November. But the country has only 55.6%. It can be assumed that Russia is going to stop the supply in future. When in the winter Germany's need for fuel increases, the country can hardly fill the current target. Habeck said, "We can currently buy the necessary quantities from the market, albeit at higher prices," and this made him think that when supply was secure, saving energy was very necessary.
The cause and effect of Nord Stream 1
The drop in supply took place just after the leaders of Germany, France and Italy visited Ukraine under pressure from Kyiv to provide them weapons for the war against Russia.
In between this Dutch wholesale gas prices, the European benchmark, jumped by up to 25 per cent on Thursday morning. Cut of gas flow has been seen and reported by Italy and Austria. Like Uniper, Germany's biggest importer of Russian gas, CEZ of Italy and OMV of Austria reported a decrease in supply.