Gazprom refuses to increase gas sales to the EU as prices soar

RUSSIA / FSU POLITICS - In Brief 26 Sep 2021 by Alex Teddy
On September 21 the Russian state gas giant declined to augment shipments to the west. The EU is staring an energy shortage in the face just as temperatures are cooling.On September 21 capacity for gas shipments via Ukrainian pipeline were held. Gazprom did not purchase additional capacity. The Yamal pipeline runs through Belarus and Poland. Only a third of the space available is being used.Gazprom and other energy companies know that by not raising the amount of energy they send to the EU they will drive up the price. Gas prices in the EU doubled between July 21 and September 21 2021. EU and American politicians castigated Gazprom. Over 60% of the gas used in the EU for domestic and commercial purposes is imported. 40% of the EU's gas supply comes from Russia.The EU is considering an aid package to help it poorest member states avert an energy crisis this winter. The EU Parliament is considering whether to launch an investigation into alleged market exploitation by Gazprom. Gazprom has sufficient capacity to increase shipments hugely. Gazprom knows that the laws of supply and demand mean that by not increasing shipments it can raise prices drastically and thereby make a thumping profit. The US State Department said that Gazprom's inaction demonstrates that Russia wishes to hold the EU to ransom. That is exactly why the US opposed Nord Stream 2.Gazprom is fulfilling contracts. It is also storing ample gas in Russia. The Kremlin has been keen to emphasize that the current shortage proves that the EU needs Russia. The price rise has occurred at a moment when Nord Stream 2 is waiting for certification from the German authorities. Gazprom might only be able to use half the...

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