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Nord Stream 1 Resumes Gas Flow, Reaching Nominated Level

RUSSIA
  • As expected, the Nord Stream 1 pipeline has resumed pumping gas into Europe, with flows at around 40% of full capacity – as flagged in the nominations data yesterday. In a statement made earlier today, Nord Stream said that they are in the process of resuming gas transport, and it may take a few hours to reach nominated volumes.
  • In response to a plan on capping the price of insurable Russian oil, Novak yesterday warned that should such restrictions be installed, Russia would stop selling oil if the price cap is below their output cost, according to TASS.
  • Following warnings from the Russian foreign minister Lavrov yesterday that their strategic targets in Ukraine could broaden in response to weapon delivery systems to Kyiv, US Defence Secretary Austin and the Joint Chiefs Chair Milley spoke late yesterday, stating that further weapons shipments for Ukraine are to be announced this week, and the US are to send 4 further HIMARS artillery systems for use by the Ukrainian army.
  • Inflation data showed a further slowing in price pressures yesterday, with CPI dropping 0.17% on the week, slowing the YTD rate to 11.41% from 11.60%. PPI inflation data also came in well below forecast, dropping to 11.3% Y/Y vs. Exp. 18.0%. M/M data fell sharply: down 4.1% vs. Exp. +1.5%. The data is in support of the consensus view of further easing from the CBR this week, with the bank seen cutting rates by 50bps to 9.00% on Friday.

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