FRANKFURT/LONDON: In a fresh escalation of the energy standoff between Moscow and the European Union, Russia provided less gas to Europe on Wednesday. This will make it more difficult and expensive for the EU to fill up its reserves ahead of the winter heating season.
The key Russian gas delivery route to Europe, Nord Stream 1, has had its capacity halved to just a quarter of what it was before the supply curtailment, which was announced by Gazprom earlier this week. About one-third of all Russian gas exported to Europe goes through Nord Stream 1.
The plan underscores concerns that countries won’t be able to reach commitments to restock stocks and keep people warm during the winter and that Europe’s already frail economic development may suffer another setback if gas has been rationed.
