BBC news today holds that Gazprom has suspended gas delivery to Finland, Poland, Denmark, Bulgaria and Netherlands. It is stated that these countries did not pay in roubles. Latvia is the latest European country to face such action amidst the Ukraine tension.
Gazprom accused Latvia of violating the conditions for the purchase. Gazprom did not give an account of what happened but immediately cut the gas delivery to the country. This is a challenging situation for Latvia, but the government said it did not think the cut in gas delivery would affect the country. However, Latvia relies on Russia for significant gas supplies from the beginning.
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Natural gas makes up only twenty-seven per cent of energy consumption. The economics minister of Latvia says he doesn’t expect the cut in gas delivery to Latvia to have a big impact on the country. He believed they would thrive amidst the challenge.
The Nato, Baltic, Estonia and Lithuania put up more strength in Latvia as the region has long been seen as a flashpoint with Russia. The Baltic states were formerly part of the Soviet Union’s plan to stop the import of Russian gas in 2023.
The cut of gas is such a severe action that Gazprom took on Europe via a Nord stream pipeline up to 20% capacity on Wednesday. Russia asks that surrounding states pay for Gazprom gas in roubles which Europe rejected outright by saying there is no agreement on the condition of payment in roubles. Latvia says it was buying Russian gas in the European currency. Europe is now implementing new strategies to increase the import of gas from elsewhere like Norway, the United States and Qatar.
Russia Gazprom wages a gas war against Europe.
According to Ukraine, Gazprom reduces its supplies to Germany as the Russians are waging war against Europe.
A survey opines that Russia supplied Europe with forty per cent of gas last year. The biggest importer of gas was Europe, Germany and Italy, and this stat was in 2020. The United States is independent as it does not import any of its gas from Russia. 4% of the United States’ needs are imported from Russia, although the country doesn’t rely solely on Russia.
Last year, gas prices increased significantly in the United Kingdom because the Russians curtailed the supplies to mainland Europe. This Russian action has caused severe damage to the gas economy by shooting its price.
Europe gets tired of Russia’s actions, saying they will stop their export from Russia’s Gazprom. The problem lies ahead as it may be impossible to get alternative gas supplies. Europe must stand up to produce its gas like Qatar and the United States. Leaving the Russia Gazprom, LNG terminals in Europe aren’t enough to turn them to producers, says advisor kate Dourian.
Russia responded by saying non-ally nations with Europe should pay for gas in roubles as this helps boost the Russian currency. The non-ally country in Europe is obliged to do this, and they settle into Russia’s bank account, which automatically turns euros into roubles. The gas war wasn’t enough, Europe will ban all oil imports from Russia by the end of this year, but the country will allow oil to be imported by pipeline. This rule was passed, but the European leaders say it is a temporary measure since other countries depend on It.
The united states are not excluded from the fight, and they also banned oil imports from Russia. By the end of the year, the Russians are to phase out wholly.
Joe Biden ordered the release of oil from the American reserve. The relaxing thing for Europe is that they can buy oil from other producers. This will help them phase Russians out entirely.
Wrapping up
Russia Gazprom cut the delivery of gas to Latvia, which was a total shock to the country, but they still believed it would affect them in a lesser way. They said they did not follow the necessary rules, affecting their economy. It is a pity that the Russians melt out such a drastic decision because they did not pay for their gas in roubles.
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