Source: China News Network
Recently, two bad news spread to Europe, both from Gazprom (Gazprom for short). Gazprom said that starting on September 1, first, the "Nord Stream" pipeline gas transmission was suspended for three days; Second, the company suspended gas supply to the French company Engie.
The superposition of russia's two "gas outage" plans can be described as worse for Europe, which is facing a serious energy crisis. EU countries have to speed up the pace of coping, but can the crisis be alleviated?
"Out of breath" has no choice, what is the impact?
First, the Nord Stream pipeline suspended gas supply. Gazprom announced that according to Siemens technical documents, technical maintenance of the gas compressor is required every 1,000 hours, so the pipeline will be suspended for three days from August 31 to September 2.
Data map: "Nord Stream-1" natural gas pipeline.
As the main natural gas supply line from Russia to Europe, the status of the Nord Stream pipeline is crucial and is currently difficult to replace. Its total daily capacity was originally nearly 170 million cubic meters, but after the russian-Ukrainian conflict began, Russia's energy sector was sanctioned by Europe and the United States, and since mid-June, the operation of the Nord Stream pipeline has been restricted, and the gas volume has dropped to 20%.
The Russian side has repeatedly stressed that Western sanctions have caused problems in pipeline gas transmission, and at present, there is only one turbine running in the Nord Stream pipeline. The Russian side must confirm that after the turbines are repaired in Canada, they do not apply to the sanctions of Canada, the United Kingdom and the European Union, and that the Nord Stream pipeline can restore the daily gas supply level of 33 million cubic meters after the equipment has no technical failure.
However, ukrainian gas system operators previously believed that going through the country's and Poland's alternative corridors could compensate for the disruption of Nord Stream operations.
In March 2022, the French company Engie issued a statement on the situation in Ukraine, expressing its support for Ukraine. Image source: Screenshot of Engie's official website
On the other hand, because the French company Engie did not pay the full amount of the gas for July according to the existing contract, Gazprom decided to suspend the supply of natural gas to the company from September 1, 2022 until the full amount of the gas supplied was received.
French newspaper Le Figaro reported that Gazprom's natural gas deliveries to Engie have fallen in July to about 150 million cubic meters per month.
However, Engie assures customers that even if Gazprom is cut off, the company has "taken steps" to ensure that the gas supply is not interrupted.
"The worst energy crisis since World War II"
It may seem that Ukraine and France have downplayed the energy issue, but the data and analysis show that Europe is struggling. Hess, an expert at the Institute for Foreign Policy Research in London, believes that in the field of energy, this is "the most serious crisis that Europe has faced since World War II".
Over the past year, electricity prices in EU countries have soared nearly 10 times as never before. This not only worsens inflation, but also increases the economic burden on businesses and households that have survived the COVID-19 pandemic and have had a hard time getting a respite.
Uk food prices in August 2022 hit the fastest pace since 2008. Image source: Screenshot of the Sky News report
Natural gas, electricity, fertilizers, grain... The cost of living in all aspects of Europeans is rising. From subsidies to limiting electricity prices, European countries have had to do their best to cope, and everyone's life is not very good: ↓↓
United Kingdom
The British "Independent" quoted a report from a consulting company on August 29 that due to high energy prices, 23% of Britons will not turn on heating this winter, and 69% of residents plan to reduce heating. After October, the Briton's electricity bill will rise by as high or rise by 80%, and the account will reach a record 3549 pounds per year.
Britain's Evening Standard has proposed blocking windows to keep out the cold, and nearly 80 percent of British bar owners say they will not be able to afford the rise in electricity bills, and the country could face "massive closures of bars and restaurants."
Cox, chief executive of London's energy consultancy, warned that only money from the government and taxpayers could help people through the crisis, but the British government is "trying to hide" the threat.
France
Although the French government has promised that electricity prices will not rise by more than 4% by the end of the year, and Prime Minister Borné has also said that the government plans to limit energy prices for consumers by 2023, the crisis has stopped the car. In the "worst case", partial power cuts may occur, and even the capital, Paris, may change from a "city of lights" to a "dark capital".
French President Macron.
French President Emmanuel Macron will convene a meeting of the Defense and National Security Council on September 2 to discuss natural gas supply and the price increase on winter eve.
Macron also warned that France is going through a period of great turmoil and that "the life of abundance is coming to an end." He called for preparation for the consequences of an economic crisis, including the situation in Ukraine, climate change and food shortages.
Germany
Earlier, German Chancellor Schoerz realized that inflation in Germany had reached its highest level in nearly 50 years. He promised to launch a package of new measures to ease the burden on Germans, but the federal government also said that natural gas prices could start rising as early as September. German authorities have demanded that the storage capacity of the country's gas storage facilities increase to 85% by October and 95% in November.
To save energy, the façade lighting of the iconic building in Berlin, Germany, has been reduced.
German authorities could also force companies and factories to reduce consumption or shut down production, which would spell economic disaster. In addition to hospitals and social public facilities, Germany stipulates that government buildings cannot be heated to more than 19 degrees Celsius, and the hot water supply will be stopped, and the lights used to illuminate monuments will also be extinguished.
German Finance Minister Lindner promised the government would release billions of euros in bailout funds. At the same time, he stressed that the problem of energy and electricity costs should be solved as soon as possible so as not to aggravate inflation.
This is true of the three major economies of Europe, and the situation in other regions can be imagined. ↓↓
Italy
Due to the energy crisis, the electricity bill of the Italian cable car has nearly tripled, and it may not be possible to hold the ski season; Schools expect to teach children remotely on Saturdays and lower classroom temperatures on other days.
Poland
Poland is facing the threat of discontinuation of milk, meat, beer, carbonated beverages and even bakery products. Although Poland has a $200 heating subsidy, high coal prices are forcing people to buy firewood, and 80% of the annual stock of firewood has been sold due to high demand. 73% of Poles are dissatisfied with the way the government has cracked down on price increases in products and services.
Hungary
Hungary's Minister of Foreign Affairs and Foreign Economic Affairs, Peter, said Europe's energy security could not be without Russia's resources. As winter, which lacks heating, approaches, Western Europe's energy policy is collapsing "at the rate of an asteroid." The Hungarian Prime Minister's office, Galkey, believes that the spread of anti-Russian sanctions to the energy sector is a "fundamental mistake" of the EU.
Austria
Austrian Chancellor Nehammer recently called on Europe to make a unified decision on limiting electricity prices, hoping that all EU countries will jointly stop the current "price explosion". He said that electricity prices should be dealt with separately from natural gas prices and needed to be adjusted to levels similar to current production costs.
Czech Republic
Czech Industry Minister Sikora announced that an emergency meeting of EU energy ministers will be held on September 9 to cap the price of natural gas used for power generation. Another option is for governments to intervene in the market and possibly discuss other tools, the main task being to decouple electricity prices from gas prices.
Netherlands
The Netherlands had the capacity to pump millions of additional cubic meters of natural gas by increasing the production of groningen gas fields. But for fear of triggering an earthquake in the surrounding area, the government plans to halt its work.
Riots, unrest? What is the cost of Europe?
When the energy crisis comes, what will the Europeans pay?
This is an unavoidable question in European politics. Governments fear that the energy crisis will destabilize their political stability.
Polls such as the European Barometer show that 40% of Greece's citizens oppose sanctions against Russia; Germans who support sanctions against Russia fell from more than 65 percent to 58 percent.
During the UK's summer heat, a store reminds customers that there are only four wall-mounted fans left in the store.
British authorities believe that rising electricity prices and the cost of living could trigger a wave of mass unrest and crime, and the government is working on countermeasures. London Mayor Sadiq Khan warned that the cost-of-living crisis could develop into a "national disaster" if the government did not take immediate action.
Chris Gilles, economic editor of the Financial Times, warned that Ukraine's victory should not come at the cost of freezing houses in Vienna, Berlin or Prague, and that the only way to do that would be cooperation and solidarity among European countries.
The British economist also expressed his fear of European nationalism. Recent experience has shown that European solidarity during the crisis has not been at its best, as has been witnessed during the COVID-19 pandemic. If governments begin to act in their own interests, how can they ensure that the same atmosphere does not repeat itself with the onset of winter?
EU reflection, the transformation is about to begin?
"We must develop a tool to ensure that natural gas prices no longer dominate electricity prices," Said European Commission President von der Leyen in Berlin, Germany, on August 30, local time, "they must be decoupled."
President of the European Commission von der Leyen.
A growing number of EU member states are calling for a cap on electricity prices and a shift to supporting sweeping reforms in the energy market.
Von der Leyen's previous remarks at the Bled Strategy Summit the previous day have been seen as a shift. That is, the European Commission no longer defends the design of the EU electricity market, but decides to intervene in the energy market, showing the determination to intervene urgently and reform.
According to Bloomberg, the Eu has previously cited Russia's response to drastically restricting or cutting off gas supplies. Although the European Commission considers limiting the price of natural gas, it is limited to the introduction of the maximum regulatory price in emergency periods and emergencies, and other times it is still priced by the market as much as possible.
Now, the EU is beginning to examine the flaws of its own system and reconsider market-oriented energy policies. The market turmoil after the Russian-Ukrainian conflict has made them finally recognize the real dilemma. In addition to restricting Russian energy imports, electricity prices linked to gas prices, coupled with global supply chain difficulties, have pushed Europe into a fire pit.
Russian President Vladimir Putin.
In the view of Russian President Vladimir Putin, the sanctions imposed by Europe and the United States on Russia have hit the global economy hard, and the West's long-term plan to contain Russia will make "the lives of millions of people worse."
Putin believes these events will "put an end to Western global dominance in politics and economics."
Chief international reporter of China News Network: Meng Xiangjun