Russia ‘took advantage’ of Europe’s energy crisis
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Russia did not cause Europe’s energy crisis — but it didn’t help, and instead tried to benefit from the situation, according to Amos Hochstein, the U.S. State Department’s senior advisor for global energy security.
It sure did not do any good. [the energy crunch]Hochstein stated that he did so and actually took advantage of it.” Hochstein said to CNBC. Hadley GambleThis Wednesday
Russia chose not to send additional natural gas supplies to Europe for November despite saying it is ready to help,The October auction results were displayed.
Gas prices in Europe hit record highs in OctoberSurging demand has led to lower inventories than ever and a limited supply.
Russia started pumping less gas to Europe in AugustSome analysts suggest that the country is limiting its discretionary supplies to back the argument for the controversial Nord Stream 2 pipelineThe smuggling vessel will be able to transport gas from Russia to Germany, bypassing Ukraine and Poland.
While the German regulators are approving the pipeline, opposition has been raised for a variety of reasons. One reason is concerns that Nord Stream 2 may not be in accordance with Europe’s climate goals.
Washington is concerned that Nord Stream 2 could give Moscow too many power in Europe’s natural gas supply. 2020 around 43% of Europe’s gas imports came from Russia
Kyiv worries that Russia may bypass Ukraine to take its gas revenue.
How can energy be used as a weapon
Hochstein claimed that Moscow was close to being able to use energy for weapons.
“They’ve come very close to the line of using it as a weapon by suggesting that if a political decision was taken in Germany … to certify the Nord Stream 2 pipeline, all of a sudden, gas would appear, and there would be plenty of gas from Russia for Europe,” Hochstein said.
Russian President Vladimir PutinIt has rejected claims that his country is weaponizing energy against Europe.
“Even through the most difficult parts of Cold War Russia has consistently fulfilled its contractual obligations, and supplies gas for Europe,” Putin told CNBC in October.
Hochstein stated that references to contractual amounts were an “excuse”, as those levels are the “floor, and not a ceiling” for appropriate energy supply.
According to him, the price rises to historical heights indicate that consumers are not satisfied with their supply. Therefore, producers must ensure they have sufficient supply to meet demand and bring down prices.
He stated that Russia has an obligation to supply energy to ensure normal economic activity. This will help to maintain GDP growth and avoid high oil or gas prices.
Russia is not a reliable supplier and must only deliver contractual level, he stated.
Hochstein confirmed that they haven’t broken any laws. Hochstein said that Moscow has “never let any good crisis go to waste.”
“Unfortunately,” he stated.
— CNBC’s Sam Meredith, Holly Ellyatt, Chloe Taylor, Silvia Amaro contributed to this report.
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