(This article was originally published on 9 October 2021 and has been republished from The Quint's archives in light of Germany announcing on 22 February that it will not certify the Nord Stream 2 pipeline after Russia recognised and sent troops into Donetsk and Luhansk, in Ukraine.)
Gas prices in Europe have risen by almost 600 percent in the past year due to surging demand that has not been met by a proportionate increase in supply.
The deputy prime minister of Russia, Alexander Novak, said on Thursday, 7 October, that the Nord Stream 2 gas pipeline’s approval by Germany could get gas prices back in control, reported The Guardian.
This statement comes in the context of European politicians blaming Russia for limiting the supply of gas to European countries.
Gazprom, an energy company whose majority shares are owned by the Russian state, is Europe’s largest supplier of gas and fulfils around 35 percent of Europe’s gas demands.
European energy firms are complaining that Gazprom is limiting its supply to long-term contractual obligations and is not increasing the supply of gas to meet the rising demand, a policy that could curb gas prices in the continent.
However, European parliamentarians argue that Nord Stream 2 lies in the core of this crisis, and that Russia is using Gazprom’s monopoly on gas supply as leverage to coerce Germany’s clearance for the undersea pipeline, Reuters reported.