MTS Help Center

Russia offered to pump more gas to Europe. But analysts doubt that’s ever going to happen

So when Russian President Vladimir Putin stepped in on Wednesday, offering to increase Russia’s gas supplies to Europe, regional gas prices (up a staggering 500% so far this year) fell and markets breathed a sigh of relief.

Market analysts quickly suspected that the offer to increase supplies to Europe was likely intended to put pressure on Germany to certify the Nord Stream 2 gas pipeline (which will take Russian gas supplies to Germany via the Baltic Sea) for use, as Russia is waiting on Germany’s energy regulator to authorize the $11 billion pipeline, a process that could take several months.

Experts warned that Russia’s offer demonstrated that Europe is increasingly vulnerable to Moscow’s ability to turn on — and off, more importantly — gas supplies as and when it wants.

“Currently, the Russian domestic gas market remains tight, with its inventories running low, output already near its peak and winter looming in Russia as well, limiting gas export capacity,” she said.

Reference: CNBC

Read More: https://www.cnbc.com/2021/10/08/doubts-over-whether-russia-will-pump-more-gas-to-europe-as-promised.html