Gas prices soar as Russia cuts German supply

Image source, Reuters

Gas prices went up after Russia cut gas supplies to Germany and other countries.

European gas prices were close to their previous all-time high.

The Russians are accused of using gas as a political weapon.

Russia has been cutting flows through theNord Stream 1 line to Germany, with it now operating at less than half of its normal capacity.

The latest cut was necessary to allow maintenance work on a turbine, according to the company.

There was no technical reason for limiting the supply according to the German government.

Russia has been accused of starting a gas war against Europe and cutting supplies.

Pressure on EU countries to reduce their dependence on Russian gas is likely to increase due to the reduction in flows.

European leaders have been discussing ways to reduce their dependence on Russian fossil fuels.

The European Union agreed on Tuesday to cut gas use if Russia stops supplies.

Between August and March, EU members have agreed to reduce gas use.

The deal was changed after not having exemptions.

The EU wants to make savings and store gas ahead of winter in order to warn Russia of its use of energy supplies as a weapon.

If supplies get to crisis levels, the voluntary agreement would become compulsory.

In May, the EU agreed to ban all Russian oil imports by the end of the year, but a deal has taken longer.

The price of gas at the wholesale level has gone up since Russia invaded Ukraine.

The price hike is blamed on Western sanctions, but the Kremlin insists it is not responsible for the recent gas supply disruptions.

The UK would not be directly impacted by gas supply disruption, as it imports less than 5% of its gas from Russia, but it would be affected by rising prices in the global markets.

The price of gas in the UK was almost six times higher than a year ago, but still 20% below the peak seen in the wake of Russia's invasion of Ukraine.

The UK's energy bills went up by an unprecedented £700 in April and are expected to go up again in October.