Russia’s Putin pledges uninterrupted fuel provides as sanctions loom

FILE PHOTO – Russian President Vladimir Putin delivers a video handle to the nation, following the initiative of the nation’s decrease home of parliament and safety council to recognise two Russian-backed breakaway areas in japanese Ukraine as unbiased entities, in Moscow, Russia, on this image launched February 21, 2022. Sputnik/Alexey Nikolsky/Kremlin by way of REUTERS

MOSCOW, Feb 22 (Reuters) – Russia will proceed uninterrupted pure fuel provides to world markets, President Vladimir Putin pledged on Tuesday, after Germany halted a key fuel pipeline’s certification over Moscow’s troop deployment to 2 breakaway areas in japanese Ukraine.

On Monday Putin recognised Donetsk and Luhansk in japanese Ukraine as unbiased after which deployed troops there whereas denying plans to invade, prompting the US and European Union to debate potential sanctions. learn extra

The announcement by Putin in a protracted televised speech on a Monday night time spurred a sell-off in Russian belongings and pushed international oil costs to their highest since 2014. learn extra

“Russia goals to proceed uninterrupted (fuel) provides, together with liquefied pure fuel, to the world markets, enhance associated infrastructure and enhance investments within the fuel sector,” Putin mentioned written remarks for a fuel summit in Qatar on Tuesday.

Europe secures some 40% of its fuel wants from Russia and was wanting into approval of a newly-built Nord Stream 2 undersea fuel pipeline which connects Russia with Germany.

On Tuesday, Germany, Russia’s prime fuel client and till lately a key vitality companion in Europe, placed on ice the certification of the Nord Stream 2 pipeline in response to Russia’s transfer in japanese Ukraine. learn extra

EU overseas ministers are because of meet afterward Tuesday to debate a sanctions bundle on Russia consisting of 4 components, an EU Fee supply instructed Reuters. learn extra

European monetary companions with the Nord Stream 2 might go in courts ought to sanctions be slapped on the $11-billion undertaking, Russian vitality minister Nikolai Shulginov instructed Power Intelligence on Tuesday.

Gazprom didn’t reply to request for a remark and the Nord Stream 2 consortium declined feedback.

RUSSIAN GAS SUPPLIES IN FOCUS LONG BEFORE CRISIS

European spot fuel costs rose by 10% to 78.55 euros per megawatt hour (MWh) on Tuesday on tensions between Russia and Ukraine, but staying properly beneath all-time excessive of 186.25 euros per MWh hit on Dec. 21.

“Welcome to the brand new world the place Europeans would quickly should pay 2,000 euros per 1,000 cubic metres!” Russian ex-president and nonetheless an in depth Putin’s ally, Dmitry Medvedev, mentioned on Twitter on Tuesday.

Europe wouldn’t be capable to change giant volumes of Russian fuel with LNG from elsewhere, Shulginov reiterated on Tuesday. Moscow’s personal choices to re-route fuel from Europe, which comes by way of pipelines not linked with Asia, are restricted.

Russian fuel provides had been within the highlight lengthy earlier than the Ukraine disaster amid elevated international demand for the gasoline which pushed up European spot fuel costs. learn extra

As clients relied on stockpiles whereas ready for costs to chill down, the Yamal fuel pipeline, which often brings Russian fuel westwards to Germany by way of Poland, was switched eastwards, sending fuel again to Poland as an alternative.

Eastward flows from Germany again to Poland continued for the tenth week on Tuesday. Gazprom says it’s assembly its contractual obligations whereas not including fuel for the spot markets. learn extra

Austria’s OMV (OMVV.VI), one other massive Gazprom’s buyer and a monetary companion within the Nord Stream 2 fuel pipeline, mentioned on Tuesday that Russian fuel provides continued as standard and in accordance with the contract.

Reporting by Anton Kolodyazhnyy, Tom Balmforth, Oksana Kobzeva, Olesya Astakhova and Anastasia Lyrchikova in Moscow; Sarah Marsh and Madeline Chambers in Berlin; Alexandra Schwarz-Goerlich in Vienna; Writing by Katya Golubkova
Modifying by Kirsten Donovan and Raissa Kasolowsky

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