Page 6 - EurOil Week 08 2023

EurOil TIMELINE EurOil

The severing of Russia-Europe

energy ties in a year

We look at the key developments over the past year that led to the severing

of the Russian-European energy relationship.

RUSSIA EVEN during some of the tensest periods of March 31, 2022: Russian President Vladimir
the Cold War, USSR oil, gas and other energy Putin gave European gas buyers a stern warn-
supplies to the West continued unabated. But ing at the end of March last year: start paying
almost a year after Moscow launched its inva- for Russian gas in rubles when their next in-
sion of Ukraine, the once-close energy partner- voices were due, or have their supplies cut off.
ship between Russia and Europe is in tatters. It is The move was aimed at sowing discord in
worth looking back at the key events that led to the EU, bolstering the strength of the ruble and
the present situation. preventing Gazprom’s revenues from potentially
being frozen in European bank accounts. The
February 22, 2022: Two days prior to Mos- majority of buyers complied with the decree, but
cow’s invasion of Ukraine, Germany’s govern- a number resisted.
ment halted the certification process needed
for the launch of Russia’s controversial Nord April 27, 2022: Among the buyers that re-
Stream 2 pipeline. German Chancellor Olaf fused to comply were Poland and Bulgaria,
Scholz said the pipeline, which would have which had their supply halted on April 27.
provided an extra 55bn cubic metres per year Poland was able to rely on LNG and pipeline
of Russian gas to Germany and its neighbours, imports from its neighbours to withstand the
could not be certified, as “the situation has loss of Russian supply, but the situation was
fundamentally changed.” He was referring to more difficult for Bulgaria. The launch of an
the Kremlin’s decision to recognise the break- interconnector with Greece in July helped ease
away republics of Donetsk and Luhansk a day the situation, although Bulgarian politicians
earlier. continue to debate whether or not authorities
Scholz had previously held the position of his should agree to pay in rubles to get their Rus-
predecessor Angela Merkel, who had repeatedly sian supply back.
insisted that the project was strictly economic In the subsequent months, more gas buyers
in nature and not political. Nord Stream 2 was lost their supply, including companies in Den-
originally due online before the end of 2019, but mark, France, Finland, Germany, Italy and the
construction was held up by permitting delays in Netherlands.
Denmark and US sanctions, which forced Swiss
pipelayer Allseas to withdraw from the project June 14, 2022: Gazprom declared on June
before its work was done. Russia then had to 14 last year that it was cutting gas flow via the
deploy its own pipelaying vessels to finish the Nord Stream 1 pipeline by 40%, blaming Sie-
job, which they finally did in September 2021. mens’ failure to return a turbine on time that
What followed was a lengthy certification pro- had been sent off for repair, as well as other
cess, which ultimately came to nothing. technical difficulties at the Portovaya compres-
sor station as a result of Western sanctions. The
March 8, 2022: Responding to calls from following day it restricted flow to only 40% of
member states to break off energy ties with capacity, after switching off another turbine,
Russia, the European Commission on March 8 causing supply shortages across Europe.
unveiled its RePowerEU plan, which was even- Various European leaders accused Gazprom
tually finalised just over two months later. of weaponising gas supply, particularly as Can-
In its final form, RepowerEU called for the ada, where the turbine previously mentioned
rapid increase in LNG and other non-Russian was repaired, had shipped it to Germany for
gas imports and reductions in demand, with onward delivery to Russia. Russia refused to
the aim of cutting Russian gas consumption by accept the turbine, claiming it lacked sufficient
two-thirds by the end of 2022. With the rapid documentation and guarantees.
deployment of renewables and other low-carbon
technologies, the goal was to eliminate Russian July 25, 2022: Gazprom added further pres-
imports completely by 2027. In the end, due to sure on the European gas market in late July,
the Kremlin’s own actions, Russian imports restricting Nord Stream 1’s flow further to only
were cut far more quickly than Brussels had 20% of capacity after shutting down another
envisaged. turbine servicing Nord Stream 1.

P6 www. NEWSBASE .com Week 08 23•February•2023