Is Gazprom to blame for the gas problems of the Old World?
Europe is experiencing an acute energy crisis. The price of gas in 2021 kept hitting records, storage facilities are still half empty, and there is a catastrophic shortage of energy from windmills. Against this background, the head of the International Energy Agency (IEA), Fatih Birol, decided to blame Gazprom for the gas troubles of the Old World. Deputy Prime Minister Alexander Novak denies the company’s involvement in the energy crisis. For Russia, as a supplier, it is not profitable for the cost of blue fuel to be sky-high. Gazprom is interested in making its services attractive and in demand. Why is the IEA heating up the situation, MK understood.
No sooner had the New Year’s fireworks died down than claims against Gazprom again, as in 2021, rained down. This time, Fatih Birol, the head of the world’s authoritative IEA, blamed the company for the energy crisis in Europe, saying that Moscow could supply a third more gas to the continent. “We believe that there are strong elements of tension in the European gas market because of Russia’s actions,” he said. According to Birol, Russia can increase supplies to Europe by at least a third.
In response, Deputy Prime Minister Alexander Novak stressed that Gazprom is not to blame for the high gas prices in the European market and the company operates within the framework of the contracts that it has. and growing demand for gas as the economy recovers. Meanwhile, EU storage is only 50% full, compared to the usual January level of 70%.
It seems that the head of the IEA thus expresses regret that prices are rising. But if Gazprom had increased gas supplies, then prices would have been lower, according to Birol, the deputy head of the Alpari IAC, Natalia Milchakova, believes. It should be noted that gas in Europe went up again after lowering prices before the New Year. The exchange price has now exceeded $1.1 thousand per thousand cubic meters. This, of course, is two times lower than it was at the peak value of the end of last year, but at the same time it is three times higher than a year ago.
“Even if Gazprom had increased supplies, it is not a fact that stock prices would have been much lower, — Milchakova believes. — Ideally, anti-Russian European officials and proteges of the United States in Brussels would like to see Gazprom and Russia in general out of the European gas market. But no one can supply such large volumes and on such favorable price terms to Europe, so the proteges of the United States have to reckon with Gazprom and Russia.” They would also like to see green energy finally start working properly so that they no longer consume gas. But even this is still in the realm of fantasy.
The situation is reminiscent of some kind of political distortion, says Aleksey Grivach, Deputy General Director of the National Energy Security Fund. According to him, the MAE is engaged in lobbying the interests of countries that consume hydrocarbons, which see this structure as a kind of counterbalance to OPEC.
“If we talk about the content of the claim, then it is completely meaningless. Gas supplies are carried out on the basis of existing contracts and applications. If, in the current international situation, Gazprom had not fulfilled any contractual obligations, the consequences would have been very serious: shouting to the skies, turning on all the sirens, activating the work of regulators, politicians at all levels. Now there is no such thing. The situation is calm. At the same time, many European clients themselves place very low bids. It turns out that they themselves take less Russian gas than they could. This is a clear distortion on the part of Mr. Birol,” Grivach concluded.
If we start from the fact that Gazprom does not distribute gas to Europeans for free, then, of course, the accusations against the Russian company are justified, Sergey Pikin, director of the Energy Development Fund, ironically. Behind the expert’s sarcasm lies the following: the happiness of European consumers is in their own hands. Gazprom will supply as much as it is obliged to, but only under a long-term contract.
“Gazprom supplied gas exclusively under contracts. In Europe, they realized that there is not enough energy from the wind. The vaults remain half empty. Against this background, a rush game for an increase began. Prices have skyrocketed, – says the interlocutor of “MK”. – Do you want more gas? Conclude appropriate contracts, as Serbia, Hungary and Moldova have already done.”
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