Putin blames Europe for power disaster as EU works on value cap By Reuters

By Alan Charlish and Robert Muller

WARSAW/PRAGUE (Reuters) -Russia’s president mentioned Europe was guilty for its power disaster with insurance policies that starved the oil and gasoline business of funding and mentioned value caps would make it worse, as EU states tried to forge a deal on methods to comprise hovering power prices.

Worries in regards to the safety of power provides have been heightened on Wednesday when a leak in Poland on the Druzhba pipeline from Russia decreased the movement of oil to Germany.

Poland mentioned the leak was most likely attributable to an accident however it got here as European Union nations are looking for to wean themselves off a reliance on Russian power in response to the invasion of Ukraine in February.

The Nord Stream gasoline hyperlink that serves Germany is presently out of motion after a leak final month that each Russia and the West have blamed on sabotage, with out figuring out who was behind it.

President Vladimir Putin mentioned the leaks within the two Nord Stream pipelines operating from Russia to Europe have been an “act of worldwide terrorism” and about depriving folks of low cost power.

Putin mentioned gasoline might nonetheless be equipped by one intact a part of the Nord Stream 2 pipeline however it was as much as the EU whether or not or not it wished the gasoline. Germany cancelled the Nord Stream 2 venture after Russia despatched troops into Ukraine.

Talking at an power discussion board in Russia, Putin mentioned Russia was to not blame for the sky-high power costs in Europe.

The impression of efforts to make use of much less Russian power, plus steep cuts in provides from Russia, have been felt throughout the 27-nation EU, with gasoline costs virtually 90% greater than a 12 months in the past and fears of rationing and energy cuts over the approaching winter.

PRAGUE TALKS

EU power ministers have been assembly in Prague on Wednesday to attempt to agree new measures to sort out the disaster.

Most EU international locations say they need a gasoline value cap, however disagree on its design. Some international locations, together with Germany, Europe’s greatest gasoline market, stay opposed, arguing it dangers choking off provides.

Germany and the Netherlands put ahead their very own proposals earlier than Wednesday’s assembly within the Czech capital – suggesting 10 “no-regret” EU measures, together with a brand new benchmark value for liquefied , more durable targets to save lots of gasoline, and negotiating decrease costs with different suppliers, corresponding to Norway.

In neighbouring Poland, pipeline operator PERN mentioned a leak was detected on Tuesday night in a piece of the Druzhba oil pipe round 70 kilometres (43 miles) from the central Polish metropolis of Plock.

The Druzhba pipeline, whose identify means “friendship” in Russian, is likely one of the world’s largest, supplying Russian oil to a lot of central Europe, together with Germany, Poland, Belarus, Hungary, Slovakia, the Czech Republic and Austria.

“Right here we will speak about unintentional harm,” Poland’s prime official answerable for power infrastructure Mateusz Berger advised Reuters by phone.

Germany’s PCK Refinery within the jap city of Schwedt mentioned it was nonetheless receiving oil deliveries from the Druzhba pipeline however at decreased capability.

SUPPLY FEARS

Throughout Europe, analysts have put the gasoline provide shortfall at virtually 15% of common winter demand and mentioned Germany wanted to chop power consumption by round a fifth, with worrying implications for Europe’s greatest economic system whose business has relied on considerable, inexpensive power provides.

The power disaster has had knock-on results throughout the entire of Europe as companies have handed on additional prices, squeezing family budgets.

Governments are additionally making an attempt to determine methods to fund emergency measures taken to guard clients and clean out the distortions attributable to the surge in costs.

EU member Portugal plans to inject 3 billion euros ($2.9 billion) into its electrical energy and pure gasoline methods to curb costs paid by corporations subsequent 12 months, the federal government mentioned on Wednesday.

In Britain, the brand new authorities set out plans for a brief income restrict on low-carbon electrical energy mills, which the business mentioned was a “de-facto windfall tax” on renewable power producers.

Rocketing gasoline costs throughout Europe and Britain have pushed up the price of electrical energy.