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Economic Affairs
Russia's gas cuts - the pain and the gain
They will hurt in the short term but will be a blessing in disguise by accelerating the EU’s green transition
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Many analysts believe that Russia is using maintenance problems as a pretext to cut gas supplies to Europe.
PHOTO: REUTERS
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The drastic cuts in the flow of gas from Russia to Europe since June threaten to condemn the continent to a freezing winter. Through skyrocketing gas prices, the cuts will also have ripple effects that will be felt around the world. But in the medium term, they will be a blessing in disguise, accelerating the shift to a more diversified energy mix and the adoption of renewables - and not only in Europe.
In June, Russia reduced the flow of gas to Europe through the biggest pipeline to Germany, Nord Stream 1, to 40 per cent of capacity, citing maintenance problems - an alleged result of sanctions against Russia, which prevent the export of spare parts and repaired equipment. Then last week, it turned the screws tighter by slashing the flow to just 20 per cent of capacity.
