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Former Russian President Threatens European Gas Price Surge

ENERGY

Putin ally and Former Russian President Dmitri Medvedev has attacked the German decision to deny certification of the gas pipeline Nordstream 2.

  • Medvedev said on Twitter: 'German Chancellor Olaf Scholz has issued an order to halt the process of certifying the Nord Stream 2 gas pipeline. Well. Welcome to the brave new world where Europeans are very soon going to pay €2.000 for 1.000 cubic meters of natural gas!'
  • After announcing the withdrawal of Nordstream 2 certification Scholz said: 'I have asked our Economic Affairs Ministry to conduct a new analysis of the security of the energy supply.'
  • It is unclear how Europe will address a gas shortfall if sanctions are extended to existing Russian gas pipelines. US attempts to find alternate solutions to Russian gas have had limited success due to long term contractual obligations of gas suppliers.
  • One proposed alternative is increased supply from Caspian suppliers, including Azerbaijan, which would be transited to Europe via the Caucasian Southern Corridor.

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