Russia to cut gas deliveries to Europe from tomorrow

MOSCOW • Russian gas giant Gazprom said yesterday it was cutting daily gas deliveries via the Nord Stream pipeline to 33 million cubic metres a day - about 20 per cent of the pipeline's capacity into Europe - from tomorrow.

The move poses risks to Europe's gas supply ahead of winter.

Nord Stream flows were already reduced to 40 per cent of capacity since last month, after sanctions on Russia delayed the return of a turbine following repairs in Canada.

Russian President Vladimir Putin warned last week that flows could drop to 20 per cent if the turbine issues were not resolved.

Gazprom said in a statement that it was halting the operation of one of the last two operating turbines due to the "technical condition of the engine".

The supplies from the Portovaya compressor station will be slashed from 7am Moscow time tomorrow, the company said. Germany, which is heavily dependent on Russian gas, has accused Moscow of using energy as a "weapon".

The German government said yesterday there was no technical justification for Gazprom's announcement.

"According to the information we have, there is no technical reason for a reduction of deliveries," a German Economy Ministry spokesman said.

Gazprom reduced flows to Germany via the Nord Stream 1 pipeline under the Baltic Sea in recent weeks, blaming the absence of a Siemens gas turbine undergoing repairs in Canada.

Mr Putin warned the West this month that continued sanctions risked triggering catastrophic energy price rises for consumers around the world.

Europe imports about 40 per cent of its gas and 30 per cent of its oil from Russia.

AGENCE FRANCE-PRESSE, BLOOMBERG