Economy

Russia says it could do little to assist restore the Nord Stream fuel pipeline

Pipes on the touchdown facility of the Nord Stream 1 fuel pipeline are pictured in Lubmin, Germany, March 8, 2022. REUTERS/Hannibal Hanschke

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  • This content material was produced in Russia the place legal guidelines prohibit protection of Russian navy operations in Ukraine

MOSCOW, Aug 1 (Reuters) – There’s little Russia can do to assist with urgently wanted repairs to malfunctioning Nord Stream 1 fuel pipeline tools, Kremlin spokesman Dmitry Peskov mentioned on Monday, following additional falls in Gazprom’s manufacturing and exports. .

Russia minimize fuel provides by Nord Stream 1, its predominant fuel pipeline to Europe, to simply 20% of capability final week, saying generators despatched to Canada for upkeep had not been returned and different tools additionally wanted repairs. learn once more

This marks a deepening dispute by which Moscow has cited turbine issues as the rationale for slicing fuel provides by the Nord Stream 1 pipeline.

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“There are damages that require speedy restore and there are particular synthetic difficulties brought on by the blockade,” Peskov mentioned.

“This case wants fixing and Russia has little capability to assist right here,” he added.

Germany’s Siemens Vitality ( ENR1n.DE ), the producer, mentioned it had no entry to the generators on web site and had not obtained any experiences of injury from Gazprom ( GAZP.MM ) and due to this fact needed to assume the generators have been working usually.

PRODUCTION, EXPORTS DOWN

Gasoline from Russia lined round 40% of Europe’s wants earlier than Russia despatched troops into Ukraine in February in what it mentioned was a “particular navy operation”. In step with intensive Western sanctions on Moscow, the EU is working to scale back dependence on Russian power.

The Nord Stream 1 pipeline, as soon as a logo of power cooperation between Europe’s largest economies, Germany and Russia, is amongst a number of routes transporting Russian fuel to Europe.

One other key route is the Yamal-Europe pipeline, which works in reverse mode to maneuver fuel from Germany to Poland, and exports by Ukraine are additionally at decreased ranges after Kyiv closed one of many two crossing factors from Russia amid the battle navy.

In consequence, Gazprom’s fuel manufacturing fell 12% to 262.4 billion cubic meters from January to July and exports to non-CIS nations fell 35% to 75.3 bcm from the identical interval final yr, the Russian state fuel firm mentioned individually on Monday.

Final month, Gazprom’s manufacturing was 35.8% decrease in annual phrases in comparison with a year-on-year decline of 30.4% within the earlier month, Evgeniy Suvorov, an economist at CentroCreditBank, mentioned on his Telegram channel MMI, and exports have been down 58.4% in comparison with June’s decline of 49.7%.

“Russia will be unable to compensate for the lack of the European market by supplying China,” Suvorov mentioned, including that Gazprom despatched 10.4 bcm to China final yr.

On Monday, Gazprom mentioned that provides to China by the Energy of Siberia pipeline elevated by 61%, with out giving figures.

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Report by Reuters; Modifying by Alexander Smith and Barbara Lewis

Our Requirements: Thomson Reuters Belief Rules.

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