Tag Archives: Russian energy

Russia Admits Weaponization Of Gas, Halts NS1 Shipments “Until Sanctions Lifted” As EU Prepares Response To Energy Crisis, by Tyler Durden

Russian strategy is to gradually notch up the pain while staying open to negotiations. That’s not a deep secret. You’d think someone from the West, particularly Europe, might want to negotiate. Apparently not; they’d rather freeze this winter. From Tyler Durden at zerohedge.com:

Putin is done playing around.

Two days after Russia indefinitely halted nat gas supplies via the Nord Stream 1 pipeline for the amusing reason that there was an “oil leak” (shown below)…

… on Monday Russia finally admitted what everyone has known since February – namely that it has weaponized commodities in response to the West’s weaponization of currencies (as Zoltan Pozsar has said all along),when the Kremlin said that Russia’s gas supplies to Europe via the Nord Stream 1 pipeline will not resume in full until the “collective west” lifts sanctions against Moscow over its invasion of Ukraine.

Putin’s spokesman, Dmitry Peskov, blamed EU, UK, and Canadian sanctions for Russia’s failure to deliver gas through the key pipeline, which delivers gas to Germany from St Petersburg via the Baltic sea.

“The problems pumping gas came about because of the sanctions western countries introduced against our country and several companies,” Peskov said, according to the Interfax news agency. “There are no other reasons that could have caused this pumping problem.”

Peskov’s comments were the most stark demand yet by the Kremlin that the EU roll back its sanctions in exchange for Russia resuming gas deliveries to the continent. It also confirms that Russia no longer needs to pretend it needs to export commodities to Europe – after all it has more than enough demand in China and India – and is willing to give Europe just enough to rope to… well, you know the rest.

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Europe’s Virtuous Suicide, by Good Citizen

Europe is sacrificing itself on the altar of loony green energy policies and the U.S.’s proxy war in Ukraine against Russia. From Good Citizen at thegoodcitizen.substack.com:

Poland and Germany discuss why they will let their citizens freeze or go broke trying to keep warm this winter.

Historically when Germans get together in large numbers and they’re not watching Bruce Springsteen performing Born In the USA in 1988 from the oppressive side of a concrete wall, a toxic infusion of assimilation hysteria imbues the crowd and spreads to every individual, and then bad things tend to happen.

Is there a study on the malleability of the German psyche toward herd behavior? The German government has probably already conducted one in secret and uses it against the people whenever required. No doubt German Gesundheitführer Karl Lauterbach keeps the finer points of this study handy when inking his social tyrannies.

Growing up with a mother born in freshly-liberated-from-German-occupation French Alsace to a German father and French mother, it was often like watching David Banner with a croissant before she quickly outgrew her clothes and turned into a green monster for assertive control. Whenever the German in her rose to the surface, my brother and I discovered through what might be called Achtung! nurture, that things were about to become assuredly more, rigid. Let’s call it a rules-based-order upbringing.

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EU Plans Now to Actually Pay Companies to Slow Down Production. Where Will the Madness End? By Martin Jay

It’s a bizarre scheme to conserve energy. Pay them enough and they won’t use any energy at all. From Martin Jay at strategic-culture.org:

To borrow on international markets huge sums of cash will be a suicide pill for the EU in the longer term.

At the end of June, Italian MPs staged a protest inside the parliament against funding Ukraine with military aid and against the war in general. Days later, Dutch farmers take to the streets to protest against new belt tightening measures by the government which will harm their businesses leading to panic. And just in the last few days, we have seen increasingly desperate measures by the EU itself which is acting like an old man who has fallen off a bike and can’t get back on.

Wounded by the credibility blow of not getting support for its all-out sanction plan to ban all oil and gas from Russia, the EU is in an unmistakable state of panic, fretting that voters have seen just how ineffective this wannabee superpower is when push comes to shove. Blinded by its own dogma, the EU now is talking about actually paying money to big companies to reduce their production – so as to reduce their electricity consumption – so as there are no power threats to millions of citizens in the 27-nation bloc. Remarkably, the EU feels as though it has cash to burn to throw onto a fire simply to survive the cold which is coming in the next European elections in 2024 where far-right parties might even take – for the first time ever – a majority bloc in the European parliament. Actually, offering companies cash to produce less goods is pure insanity but in the Disneyworld sphere of Brussels with little or no accountability, this could actually get approved.

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“Social Peace Is In Great Danger”: Germany Is Quietly Shutting Down As Energy Crunch Paralyzes Economy, by Tyler Durden

And its all self-inflicted. From Tyler Durden at zerohedge.com:

Earlier today we wrote that Germany’s largest landlord, Vonovia, had taken the unprecedented step of restrictring heating at night, a terrifying preview of what lies in stock for the “most advanced” European nation this winter. Alas, it’s going to get worse, much worse.

According to the FT, Germany is now rationing hot water, dimming its street lights and shutting down swimming pools as the impact of its energy crunch begins to spread like the proverbial Ice-Nine wave, from industry to offices, leisure centers and residential homes.

The reason behind Germany’s slow motion paralysis is well-known: the huge increase in gas prices triggered by Russia’s move last month to sharply reduce supplies to Germany has plunged Europe’s biggest economy into its worst energy crisis since the oil price shock of 1973 (see “What’s Unfolding In Europe In Recent Days Is A Fresh Big Negative Supply Shock“)

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Can The Global Gasoline And Diesel Crisis Be Solved? By Rystad Energy

Sanctions on Russia have distorted global energy markets and refinery runs. From Rystad Energy at oilprice.com:

  • Diesel and gasoline markets are witnessing crack spreads in the $50-$60 per barrel range due to inventory stocks across the world being at record lows.
  • The global oil demand recovery looks resilient as the final Covid-related restrictions are being removed around the world.
  • Refining capacity in both Europe and the U.S. has fallen dramatically in the last decade, making the replacement of low inventories particularly difficult.

Global diesel and gasoline markets are witnessing blowout crack spreads in the US$50-60 per barrel (bbl) range, reflecting a clear lag in the refining system to respond effectively and decide between supplying diesel or gasoline. The precarious situation is driven by inventory stocks across the globe being at their lowest levels historically and, therefore, unable to provide the necessary shock absorbers. The loss of Russian refining owing to operational outages and product containment challenges has caused a diesel/gasoline hole greater than 1 million barrels per day (bpd) in Europe that is not easy to plug, Rystad Energy research shows.

“Diesel is the lifeblood of the global economy, essential to vital sectors such as agriculture, construction, and transportation – its price impacts almost all supply chains and goods. Governments face tough decisions. They can assist consumers by dropping taxes on diesel, but this will likely only increase demand, which may support the overall economy but will worsen the existing tight supply situation. If supply does not improve, governments will be forced to enact emergency plans to limit sales to consumers in order to ensure essential sectors are kept going,” says Per Magnus Nysveen, Head of Analysis at Rystad Energy.

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Meet the New Boss; Putin Reroutes Critical Hydrocarbons Eastward Leaving Europe High-and-Dry, by Mike Whitney

Putin is indeed giving Europe the energy middle finger. From Mike Whitney at unz.com:

“Rejection of Russian energy resources means that Europe will become the region with the highest energy costs in the world. This will seriously undermine the competitiveness of European industry which is already losing the competition to companies in other parts of the world…. Our Western colleagues seem to have forgotten the elementary laws of economics, or simply prefer to ignore them.” Vladimir Putin, President of the Russian Federation

On Tuesday, Russia announced a 40% reduction in the flow of natural gas to Germany through the Nord Stream pipeline. The announcement, that was made by Gazprom officials, sent tremors through the European gas market where prices quickly soared to new highs. In Germany—where prices have tripled in the last three months—the news was met with gasps of horror. With inflation already running at a 40-year high, this latest reduction in supply is certain to tip the German economy into recession or worse. All of Europe is now feeling the impact of Washington’s misguided sanctions on Russia. Here’s more from Oil Price website:

“Russia’s Gazprom said on Tuesday that it would limit natural gas supply via the Nord Stream pipeline to Germany by 40 percent compared to planned flows because of a delay in equipment repairs… The lower supply of gas via Nord Stream to the biggest European economy, Germany, sent Europe’s gas prices surging by double digits...

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Pitchforks soon in Europe? by Jorge Vilches

If Europe bans Russia energy imports, it will push the continent backward economically, and probably politically. From Jorge Vilches at thesaker.is:

Dear Europeans

For your own children´s sake — on my knees and with my saddened eyes humbly looking downwards — I beg of you to please stop the current self-destructive nonsense dead in its tracks by immediately demanding from your political class to import the bloody Russian oil normally once again as Europe had been doing for dozens of years. The impact that the ban on Russian oil has upon your daily lives now and for years yonder is such that at the very least a Referendum should have been held. But it was not, and without consultation, the EU leadership acted on their own.

Please be advised that the EU un-elected brass simply does not represent you or your needs. They were all voted amongst themselves into their positions like members of a committee in a private country club. If left unchecked, EU politicians will now continue misrepresenting you and, on your behalf — with your hard-earned assets and livelihoods – will keep on picking a most unnecessary and prolonged armed conflict with Russia, eventually forcing upon you a total war scenario where chances play out all very strongly against you, with Russia probably resulting unscathed.

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Can Europe Survive Without Russian Coal and Oil? Here’s What It Means for Skyrocketing Prices…, by Chris MacIntosh

Europe seems hell bent on cutting off energy imports from Russia. Which raises the question: what is Europe going to use for energy? From Chris MacIntosh at internationalman.com:

Russian Coal and Oil

Wait, you mean dirty stinky polluting coal? That coal?

Which brings me to….


So the EU, already in the middle of the worst energy crisis since the Arab oil crisis and likely worse, is now pushing to eliminate imports of Russian coal. Just so you understand the importance of Russian coal to Europe…

Some 70% of Europe’s thermal coal comes from Russia. Coal accounts for about 20% of continental Europe’s electricity production (as of 2019; perhaps it is 25% now).

Watching the news is enough to drive a man to drink or to put his drink through the telly.

But fear not, there is a silver lining.

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