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Future of Nord Stream 1 to depend on demand and sanctions: Russia

Reuters ECONOMY
Published July 14,2022
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Russian Foreign Ministry spokeswoman Maria Zakharova said on Thursday that the future work of Nord Stream 1 gas pipeline, which is currently undergoing annual maintenance, will depend on gas demand in Europe and "one-sided" sanctions.

Zakharova said the maintenance, which is due to finish on July 21, had been agreed in advance with gas consumers.

Europe fears Russia could extend the scheduled maintenance to restrict European gas supply further, throwing plans to fill storage for winter into disarray.

Kremlin-controlled energy giant Gazprom said on Wednesday it could not guarantee the safe operation of a critical part of Nord Stream 1 because of doubt over the return of a turbine from Canada, which had imposed sanctions against the company.

Canada said at the weekend it had issued a permit to allow the return of the turbine for Nord Stream 1's Portovaya compressor station in Russia.

"As far as the gas pipeline's work in future is concerned, a lot will depend on our partners in terms of gas demand and illegitimate sanctions, as happened with the turbines in Canada," Zakharova said.

She said the maintenance on the pipeline had been agreed in advance with consumers.

Russia accuses the West of waging economic warfare against it in support of Ukraine, but has insisted it remains a reliable supplier of energy.

The West has accused Russia, a key exporter of oil and gas, of stepping up the use of energy as a geopolitical weapon since it sent its army into Ukraine on Feb. 24.

Last month, Russia cut gas flows to 40% of Nord Stream 1's total capacity, citing the delayed return of the turbine.

Zakharova also said that attempts by the Group of Seven leading western nations to cap oil prices may in fact cause them to rise.

"Those plans are anti-market and risky," she told a weekly briefing.