Russia threatens to block gas to Europe through Nord Stream 1

Russia threatened to cut natural gas supplies to Europe via the Nord Stream 1 pipeline as part of its response to sanctions imposed over the invasion of Ukraine, a move that could heighten the turmoil in energy markets and drive consumer prices even higher.

Russia has the right to take actions that “mirror” the penalties imposed on the Russian economy, Deputy Prime Minister Alexander Novak — who’s also in charge of energy affairs —said in a televised speech late on Monday. He said no decision to shut off Nord Stream 1 has yet been taken, and the pipeline is currently operating “at its full capacity.”  

The comments come after a day of wild swings on European gas markets, with prices at one point surging by almost 80 per cent amid fear of disruption to supplies from Russia. Europe’s reliance on Russian energy has been a key factor in efforts by the continent’s leaders to agree on how to respond to the invasion of Ukraine. Last month, Berlin shelved the $11-billion Nord Stream 2 pipeline project.