Page 127 - RusRPTAug22

This decision only allows a challenge to move forward in court, and so in and of itself does not mean that Nord Stream 2 will be launched. However, it does reopen that possibility. At this point both lines of the 55bcmpa project are completed, filled with technical gas, and ready to begin delivering fuel to Germany inside of 24 hours in the event of receiving regulatory approval from that country. Numerous political actors in Europe – prominently including Poland and Ukraine – are vehemently opposed to the start of operations at NS2, and the start of the Ukraine Crisis only broadened the opposition to the project. However, a deep energy crisis in Germany and across Europe, exacerbated by a slowdown of deliveries via Nord Stream 1 after Canada denied the return of a repaired turbine to that project (which was overturned in recent days), may have European authorities looking for a politically acceptable way to start NS2 after all, we think.
Bloomberg has found a new direction for the export of Russian oil products that Europe refuses: the Middle East. Since February, deliveries of Russian fuel oil to the region have increased fivefold, to 155,000 barrels per day. Deliveries to Europe during the same time fell by 30%.
Russia earns $24 billion from selling fossil fuels to China and India. As energy prices have skyrocketed due to Russia's invasion of Ukraine, Russia sold nearly $19 billion worth of oil, gas and coal to China by the end of May, doubling last year's figure. India shelled out some $5 billion for the same period, five times more compared to a year ago. According to analyst Lauri Myllyvirta, China is buying “essentially everything that Russia can export via pipelines and Pacific ports.”
Russia has cut gas deliveries to Italy by one third, Italy’s energy supplier Eni, the partly state-owned firm, said on July 11. “Gazprom announced that today it will supply to Eni volumes of gas for approximately 21 million cubic meters/day, while the average for the last few days was of about 32 million cubic meters/day,” Eni said in a statement. The energy company added it would “provide further information in the event of new and significant changes in flows.” The move comes as gas supply to Germany via the Nord Stream 1 stopped on Monday for maintenance works until July 21. Italy’s prime minister Mario Draghi is currently working on measures to reduce gas bills and limit consumption for heating and street lighting, according to local media. The Italian government has also approved a 30 billion euros relief fund to deal with the crisis. Before the invasion of Ukraine, Italy imported 90% of its annual gas supplies, 40% of which from Russia. Since the outbreak of the war, Italy has been looking for alternative suppliers and has signed new agreements with other gas suppliers from Algeria, Qatar, Angola and the Republic of the Congo
Russia became the second natural gas supplier to Spain in terms of volumes and had the edge over Algeria, the traditional gas exporter to this
127 RUSSIA Country Report October 2020 www.intellinews.com