Germany Says Latest Russian Gas-Flow Cuts Politically Motivated

Jun 15, 2022

(Bloomberg) German Economy Minister Robert Habeck said he believes a decision Tuesday by Gazprom PJSC to cut gas flows through the key Nord Stream pipeline by 40% was “politically motivated” and not due to technical issues as the Russian company stated.

Maintenance work on the pipeline that would have a “relevant” impact on supply isn’t due to be carried out by Siemens Energy AG until the fall and, in any case, wouldn’t affect 40% of the infrastructure, Habeck told reporters Wednesday at a news conference in Berlin.

“In that sense, I have the impression that what happened yesterday is a political decision and not a decision that can be justified in technical terms,” he said. After consulting with the European Commission, Habeck gave a personal assurance to Siemens that maintenance work isn’t subject to sanctions on Russia, he added.

The government is also in talks with officials in Ottawa about whether a key turbine for the pipeline that is being repaired in Canada is included in sanctions, Habeck said.

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Following Tuesday’s cut to gas supplies through Nord Stream, Gazprom on Wednesday also cut flows to Italy by about 15%, according to a spokesperson for the Italian energy company Eni SpA. Gazprom didn’t provide any reason for the move.

The reduction in Russian gas imports came on top of an outage at an important US LNG plant and helped boost prices by 28% on Tuesday and a further 8% on Wednesday.

Habeck said the impact of Gazprom’s decision on the gas market is not yet clear. There are no supply issues in Germany but officials need two or three days to get a fuller picture, he told reporters.