The European Union apparently assumes that no more gas will flow to Europe from the Nord Stream 1 pipeline, which is currently under maintenance. This could exacerbate the already severe economic crisis. Russia is still covered on the progress of the work.
For days, EU countries have been worried about news from Russia whether the gas pipeline, which needs repair, can be put back into operation or not. “We assume that the pipeline will not be put back into service,” the Wall Street Journal quoted Austrian EU Commissioner Johannes Hahn as saying on the sidelines of a conference in Singapore.
Gas as a political means of pressure
The work should be completed by Thursday. After it was announced Monday that the necessary replacement turbine from Canada was only in Germany, the deadline seems more than questionable. Meanwhile, Russia continues to exert political pressure on the EU in the gas crisis. For example, the Kremlin recently said that further exports would depend on EU sanctions.
In addition, the company Gazprom has repeatedly emphasized that the commissioning of Nord Stream 1 cannot be guaranteed despite maintenance work.
Inflation could double
The possible further deficit could not only lead to serious energy bottlenecks across the region, but also further fuel the already severe economic crisis – in Austria inflation recently rose to 8.7 percent. But, as the head of the Austrian Institute of Economic Research, Gabriel Felbermayr, has repeatedly emphasized, inflation could even double.
“In the event of a natural gas supply stoppage or an embargo, the European economy would go into recession,” the economic researcher clarified. Should Russia permanently hinder or completely stop the supply of crude oil from Kazakhstan to Austria, the supply of crude oil would become more expensive.
Austria particularly hard hit
The share of Russia in the total import of natural gas in Austria is considerably higher than, for example, B. in Germany (2021: Austria 86 percent, Germany almost 40 percent). For a landlocked country that is more dependent on pipelines, it is more difficult to offset supply bottlenecks with other supply sources.
It is also more difficult in Austria to compensate for natural gas with other energy sources, as the electricity generated in gas-fired power stations can hardly be replaced by our own coal and, above all, nuclear power stations. In the event of a supply stop, a greater economic malaise is expected in the domestic energy-intensive industry and in the generation of electricity and district heating than in Germany.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
