German Industrialists Declare Strong Influence of Gazprom in Europe | News from Germany about Germany

Russia has great influence in the conflict over the Nord Stream 2 gas pipeline, according to the Federal Association of German Industry (BDI). If Moscow insists on certification of this pipeline in exchange for increased gas supplies, Europe could reject this demand, but then the Europeans will have to look for other suppliers, said Siegfried Russwurm, head of BDI, in an interview with dpa agency, published on Monday, November 1.

At the same time, many of the possible exporters are not able to supply gas through the gas pipeline and can only rely on sea transport, Rusvurm emphasized. According to him, American liquefied gas is not currently an alternative to gas supplies from Russia. “The United States now has a customer willing to pay – China,” – reminded the head of the BDI. Given the high demand in China, it is naive to believe that liquefied gas from the United States will be cheaper for Europeans than gas purchased from the Russian Federation, said Siegfried Ruswurm. “In times when gas demand exceeds supply, providers have more power,” he added.

Conflict over Russian gas supplies to Europe

Gas prices in recent months have increased many times and at the beginning of October they renewed their historical maximum, reaching USD 1900 per 1000 cubic meters. European experts, media and politicians have more than once expressed their suspicion that Gazprom purposefully contributed to the emergence of a deficit in the European gas market in order to force Germany and the European Union to quickly issue a permit for the operation of the completed Nord Stream 2 gas pipeline, for which it is required to withdraw it from subject to EU antitrust laws.

Moscow rejects these charges. According to Russian President Vladimir Putin, the rise in gas prices in Europe is due, in particular, to a shortage of electricity resulting from a decrease in production at wind farms. Meanwhile, at the end of October, Putin announced plans to start pumping gas into European storage facilities from November 8.

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Author: Andrey Gurkov