Russia keeps Europe waiting on new gas supplies

Russia’s Gazprom declined to book extra capacity to ship more gas to Europe from January at auctions on Tuesday, a step that would have helped ease prices in a market haunted by worries about Moscow’s intentions.

The Kremlin said Russia remained committed to start pumping additional gas to Europe once domestic storage tanks were replenished, in line with an order given to Gazprom last week by President Vladimir Putin.

Russia provides a third of Europe’s gas and its supply intentions are critical at a time when spot prices across the continent have surged, hitting households and businesses alike.

Moscow has said it is meeting its contractual obligations in full though the International Energy Agency and some European politicians have suggested Moscow can do more.

Gazprom, however, decided against booking additional gas transit capacity via Ukraine and Poland to Europe for January-September 2022, in a sign it has no plans to supply more than its contractual volumes, at least via these two routes.

Moscow denies it is withholding supplies to exert pressure on German regulators to approve gas shipments through the new Nord Stream 2 pipeline across the Baltic Sea to Germany.

via Reuters