Gas prices increased after Russia closes pipeline

Russia will not open its main pipeline for gas to the whole of Europe. This led to an increase in gas prices. The swelling came because of concerns related to energy supply. This move is directly or indirectly related to the war.

The name of the main pipeline is Nord Stream 1 pipeline. It’s restarting day was from this Saturday. But Gazprom found a leak. Gazprom is Russia’s state-owned firm.

Europe believes that this is a type of blackmail. Moscow denies this fact. A spokesman from Kremlin commented on this matter. He said that these problems are a result of sanctions imposed on Russia.

Leaving war aside, the prices were still unstable. Gas storage facilities in Germany started filling up. This created a huge stir, and prices fell drastically. The UK is not dependent on gas supplies from Russia. But we saw a 35% increase in prices on Monday.

The UK is having problems dealing with this. Liz Truss and Rishi Sunak are running for the post of UK’s PM. They both promised to tackle this problem as soon as one of them became Prime Minister. As per reports, there was a spike in the energy bill price cap which led to this.

Many European governments plan to help businesses survive this surge in prices. For example, Germany announced a package to help the vulnerable. It also plans to give tax breaks. Sweden and Finland are also planning to follow in Germany’s steps.

European nations have accused Russia of using an economic weapon. However, the Kremlin continues to deny this statement. Instead, the Kremlin said that the sanctions are obstructing the maintenance work.

Many ministers believe that this surge can lead to a ‘war winter’. The Nord Stream 1 pipeline starts from St Petersburg. It ends in northeastern Germany. The pipeline has a daily capacity of 170 million cubic meters.

Credits: BBC