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FT: G7 and EU to ban resumption of gas supplies through pipelines shut down by Russia last year

May 14, 2023
in Daily News
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The G7 countries and the European Union will ban Russian gas imports through the pipelines that Moscow blocked last year, provoking an energy crisis in the EU. According to the Financial Times, citing officials involved in the discussion of this issue, the decision will be made at the G7 summit, which will begin on May 19 in Hiroshima, Japan.

Thus, the partners want to ensure that Russia will not be able to increase energy revenues. The newspaper's sources noted that the West is blocking the trade in Russian pipeline gas for the first time since the start of the war in Ukraine.

A draft G-7 statement seen by the FT says the countries will continue to reduce Russian energy imports, "including preventing the opening of routes previously closed as Russia uses energy as a weapon," at least until then. until the conflict ends.

The embargo is being discussed as part of the 11th package of EU sanctions. The resumption of oil supplies through pipelines that Russia has blocked, including the northern branch of Druzhba, going to Poland and Germany, may also be blocked.

According to the FT, the impending ban will most likely not affect current gas exports. At present, the share of Russian gas in European imports has decreased from 40% to 10%. At the same time, gas storage facilities in the EU are filled by 60%, which is twice as much as a year ago. Officials are convinced that by the beginning of next winter, the storage facilities will be completely filled.

Last year, Russia significantly reduced and then stopped gas supplies to the EU via Nord Stream, provoking a rise in prices by more than 10 times. And in September, three out of four branches of gas pipelines were damaged as a result of sabotage.

European countries have successfully reduced gas costs, increased their use of renewable energy sources and increased offshore LNG supplies, so that prices have fallen significantly in recent months.

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