Putin says Europe solely has itself responsible for surging fuel costs

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  • Europe fuel worth hit document excessive this week
  • Putin says Nord Stream 2 launch would scale back fuel costs
  • Yamal-Europe fuel pipeline flows in reverse for fourth day
  • Putin says Russia is sidelined from managing Yamal-Europe hyperlink
  • Novak says costs cheaper with long-term contracts

MOSCOW/KYIV, Dec 24 (Reuters) – The European Union can solely blame its personal insurance policies for document fuel costs as a few of its members resell low-cost Russian fuel at a lot greater costs throughout the bloc, Russian President Vladimir Putin stated on Friday.

Putin additionally known as on the EU to approve a brand new Russian fuel route, the Nord Stream 2 pipeline, to ease the value crunch.

Europe’s benchmark fuel worth climbed to a brand new document on Tuesday, up virtually 800% because the begin of the 12 months. The value eased on Friday, nevertheless it was nonetheless up greater than 400%.

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Nord Stream 2 is opposed by america and significantly a number of east European states, which say the pipeline will make the EU much more reliant on Russian fuel, which already provides 35% of the bloc’s fuel wants.

The pipeline from Russia to Germany, which was inbuilt September, remains to be awaiting regulatory approval from Berlin and Brussels.

“The extra fuel provides on the European fuel market would certainly scale back the value on an alternate, on the spot (market),” Putin was quoted as saying by information company RIA at a joint assembly of the State Council and a council on science and training.

Including to the squeeze, the Yamal-Europe pipeline that normally sends Russian fuel to Western Europe was flowing in reverse for a fourth day on Friday, pumping gas from Germany to Poland, knowledge from German community operator Gascade confirmed.

Russian fuel large Gazprom has not booked fuel transit capability for exports through the Yamal-Europe pipeline for Dec. 25, public sale outcomes confirmed. read more

Gazprom normally books capability through the route on a short-term foundation, after Poland and Russia selected to not prolong their long-term transit deal final 12 months.

Putin stated Poland had “sidelined” Russia from managing the Yamal-Europe pipeline, which has been working in reverse mode by sending fuel eastward. The pipeline runs from Russia to Belarus and additional to Poland and Germany.

“This doesn’t improve the Russian fuel volumes on the European market, so the value is rising,” Putin stated in keeping with Interfax information company, concerning the reverse flows.

Putin stated on Thursday that Germany was reselling Russian fuel to Poland and Ukraine relatively than relieving an overheated market. read more

In Ukraine, one other transit route for Russian fuel to Europe, the pinnacle of state fuel transmission operator stated Gazprom had diminished day by day fuel transit throughout Ukrainian territory to 87.7 million cubic metres (mcm) from 109 mcm.

“The discount in fuel provides to the European Union at a time when costs reached $2,000 means that these are usually not financial selections however purely political ones, aimed toward rising strain on the EU to launch Nord Stream 2 on phrases of the Russian Federation,” Sergiy Makogon wrote on Fb.

The benchmark European fuel worth soared above 2,200 euros ($2,495) per 1,000 cubic metres on Tuesday.

Makogon stated Europe had set a document for extracting fuel from storage due to provide shortages.

Russia has repeatedly dismissed costs it has performed politics over fuel and says it’s assembly all of the quantities it’s contracted to provide. Firms with provide offers have additionally stated their contracts have been met.

MISSING OUT

Russian Deputy Prime Minister Alexander Novak additionally stated Europe was lacking out on extra Russian provides due to delays to Nord Stream 2.

“To my thoughts, European customers are very within the challenge to start out working, whereas the businesses, which take part in it, they might have submitted extra requests as a part of long-term relations on fuel provides through this new fuel pipeline,” Novak informed Russian state TV channel Rossiya-24. read more

He additionally stated European leaders had made errors in decreasing using long-term provide offers in favour of the spot market, the place costs are extra risky.

“The international locations, which obtain fuel through the long-term offers, they obtain it less expensive,” Novak stated.

Europe’s red-hot fuel market may discover some aid from redirected cargoes of liquefied pure fuel (LNG) from Asia as European costs make this diversion engaging. read more

Gazprom, which has a monopoly on Russia fuel exports by pipeline, has not booked fuel transit capability for exports through the Yamal-Europe pipeline for Dec. 24, public sale outcomes confirmed on Friday.

Gascade’s knowledge on the Yamal-Europe pipelines confirmed flows on the Mallnow metering level on the German-Polish border going east from Germany into Poland at an hourly quantity of round 1,218,000 kilowatt hours (kWh/h) on Friday and have been anticipated to remain at these ranges in the course of the day.

Information from Slovak pipeline operator Eustream confirmed capability nominations for Friday’s Russian fuel flows from Ukraine to Slovakia through the Velke Kapusany border level have been at 739,843 MWh, down from Thursday’s 785,160 MWh.

That drop was being balanced by greater nominations for flows from the Czech Republic to Slovakia, which means nominations for flows from Slovakia to the Austrian hub Baumgarten have been roughly secure in contrast with yesterday.

($1 = 0.8818 euros)

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Reporting by Vladimir Soldatkin
Extra reporting by Jason Hovet in Prague and Natalia Zinets in Kyiv
Writing by Edmund Blair Modifying by Alexander Smith and Mark Potter

Our Requirements: The Thomson Reuters Trust Principles.

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