Economic war: Europe’s energy crisis
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Present
The Nord Stream 1 pipeline, the main conduit for Russian gas into Europe, faces technical glitches amid economic war between Moscow and Brussels. Europe is already on notice that supplies will be squeezed as Gazprom shuts off Nord Stream 1 from Wednesday to Friday for maintenance.
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Energy cost
A surge in gas prices as top exporter Russia cuts supplies has squeezed German utility company Uniper, prompting it to seek an extra 4 billion euros in credit lines from Berlin, on top of a 15 billion euro bailout deal agreed last month.
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Blame
Ukraine's President Volodymyr Zelenskiy accused Russia of economic terrorism as the cost of Europe's energy crisis spiralled with Germany on the hook for at least 19 billion euros to bail out its biggest importer of Russian gas.
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4/6
Impact on stock
European shares fell to their lowest level in nearly one month as worries about tightening gas supplies from Russia, hawkish signals from the European Central Bank and weak economic outlook weighed on investors' minds. The continent-wide STOXX 600 dropped 1.0% to touch its lowest level since July 28.
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Solution
The European Union is drafting emergency plans to intervene in its energy market, as pressure grows from member states to put a lid on the surging price of electricity. As Russian gas deliveries to Europe have pushed up power costs almost 12 times than at the start of 2021.
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Shell CEO
Europe could face several winters of gas shortage as a result of the cuts to Russian supplies, Shell Chief Executive Ben van Beurden told a news conference in Norway.