Gas price rise means bonanza for Russia

RUSSIA / FSU POLITICS - In Brief 18 Sep 2021 by Alex Teddy
As world gas prices rise this means that Russian companies such as Gazprom will reap a reward. The price hikes also redouble the argument for Nord Stream 2. Spot prices for natural gas in Europe were up 20% at one stage on September 15. Gas is a vital energy source for homes and industry. Prices for gas are 4 times higher now than in September 2020.The argument for cooperating with Russia on energy is irresistible in the short team even for the most confirmed russophobe. What else can the EU do? American offers to increase gas exports to the EU have not kept prices under control. If Russia were not exporting gas to the EU then the prices would be astronomical and the supply would be far below the minimum sufficient for the EU's economy.The pipeline is at the commissioning stage. German officials are assessing whether or not it fully complies with their safety regulations and when it can begin to function. Certification is supposed to be by the end of 2022. The USD 12 billion Nord Stream 2 pipeline is ready to go now says Moscow. Gazprom says it could be operating at a few days notice. They want to prepone the start date to get it operating by the end of 2021. That may well be an overoptimistic projection.The Kremlin insists that the functioning of Nord Stream 2 will cause prices to tumble. That is almost certainly true at least in the short term. If it functions at full capacity then it could provide over 255 of the EU's. More gas on top of that can come from Russia via Ukraine. Russia is keen to reduce usage of pipeline that traverse Ukraine.Putin noted that several countries have already signed long term gas supply contracts. He claimed that were it not for this gas ...

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