Sun. Aug 14th, 2022

Russia’s energy giant Gazprom has said it’s ‘not responsible’ for Europe’s energy price hikes

The Russian state energy giant Gazprom said on Monday that European gas prices could rise even higher after they hit a record $3,892 per 1,000 cubic meters of gas. The reasons for such hikes “are not on Gazprom’s end,” the company has added.

Gazprom “fills the orders on gas purchases from its foreign customers to the fullest,” the company said in a statement, adding that it will further honor all its commitments under the long-term gas contracts. It has also confirmed that it still uses “100 percent” of Ukraine’s gas transit route despite the ongoing conflict in the country.

Some 109.5 million cubic meters of gas flow through Ukraine’s territory per day, according to data cited by TASS. Earlier, Gazprom’s spokesman, Sergey Kupriyanov, confirmed that the transit proceeds “as normal.”

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Measuring instruments show the line pressure of pipelines of the gas storage facility of Stadtwerke Kiel, Germany, March 1, 2022 © Getty Images / Axel Heimken
Germany warns against sanctioning ‘essential’ Russian oil and gas

Gas prices in Europe fell to $2,700 per 1,000 cubic meters of gas later Monday, after German Chancellor Olaf Scholz admitted that his country would not cut off Russian supplies as of now. Energy supply for Germany “cannot be secured in any other way” at the moment, he has said. The chancellor also opposed sanctioning “essential” Russian oil and gas industries.

Earlier, some media reported that the US has been discussing a ban on Russian oil supplies to Europe with the EU.

Gas prices also rose after Washington and its allies slapped Moscow with unprecedented sanctions targeting its financial sector and its ability to engage in foreign trade. One such measure involved cutting off seven Russian banks from SWIFT. The measures came in response to Russia’s military action in Ukraine launched on February 24, which Moscow said was aimed at “demilitarizing” its neighbor, while Kiev blasted it as “unprovoked.”