Russia’s state-controlled natural gas producer is warning European customers that it cannot guarantee future gas supplies, even after Canada circumvented its own sanctions on Moscow to release a repaired turbine used to transport Russian natural gas gas in Germany. Gazprom last month cited the delayed return of gas turbine equipment, which Siemens Energy was servicing in Canada, as the reason it decided to reduce the flow of natural gas through Nord Stream 1. The pipeline, which carries gas to Germany from Russia, reduced to 40 percent of capacity. Nord Stream has since been shut down for annual maintenance. Critics of Canada’s decision to release the Russian turbine say Gazprom’s warning shows how futile it was for Ottawa to bend sanctions rules in the hope that Moscow would supply more gas in good faith. “Canada has been played for a fool,” said NDP foreign relations critic Heather McPherson. Gazprom told European customers it could not guarantee gas supplies due to “exceptional” conditions, according to a letter seen by Reuters. The slowdown in Russian gas is largely seen as retaliation for Western sanctions and support for Ukraine against Moscow’s invasion. This latest move raises the forecast at this economic price: if natural gas supplies do not return to normal, European nations may not be able to build up stores for the winter and energy prices may continue to rise. Prime Minister Justin Trudeau defended the decision to flout Canada’s sanctions — a move that angered Ukraine — saying he did not want Canada to be responsible for gas disruptions to European customers. The July 14 letter from the Russian state gas monopoly said it had retroactively declared force majeure on supplies dating back to June 14. Also known as an “act of God” clause, force majeure clauses are standard in business contracts and define extreme circumstances that excuse a portion of their legal obligations. The Ukrainian Canadian Congress (UCC), an advocacy group for Canadians of Ukrainian descent, said Gazprom’s maneuver demonstrates why Mr. Trudeau’s decision will not stop the Kremlin from cutting off gas supplies to Europe. “Gazprom’s declaration of force majeure regarding Nord Stream 1 is not surprising and completely predictable,” said UCC CEO Ihor Michalchyshyn. “With Canada’s government caving in to Russia’s demands, the obvious lesson for the Kremlin is to make more and more demands.” Canada earlier this month announced it had reached an agreement to allow the import, repair and re-export of the turbines. Mr. Trudeau’s government signed an emergency license that allows Montreal-based Siemens Energy to service up to six Russian turbines over the next two years — despite sanctions on Gazprom, the main owner of Nord Stream. A parliamentary committee is set to hold hearings on Mr. Trudeau’s decision after MPs voted last week to call upon Foreign Affairs Minister Mélanie Joly and Natural Resources Minister Jonathan Wilkinson to explain Canada’s conduct. Conservative foreign affairs critic Michael Chong said the prime minister had “set a dangerous precedent”. “Canadians and Europeans are now learning that, despite assurances from the Canadian and German governments that circumventing sanctions and returning Russian gas turbines was necessary to keep gas flowing, Russia’s state-owned Gazprom may stop the natural gas to Germany anyway. Chong said. He said Canada needs to find a way to export natural gas to Europe as soon as possible. “The only way forward is for Canada to become a reliable security partner of our European allies by approving and expediting new LNG pipelines and terminals so that Canadian gas can displace Russian energy supplies to Europe – and cut off the money funding Putin’s war machine.” Added the NDP’s Ms. McPherson: “This just seems to me to be evidence that it was a bad decision to send the turbines back.” According to a Russian media outlet, the first turbine released from Canada has arrived in Europe. Canada sent a turbine to Germany by plane on July 17 after repair work was completed, the Kommersant newspaper reported on Monday, citing people familiar with the situation. There are fears that Russia could extend the maintenance period for Nord Stream 1, throwing into disarray plans to fill European gas storage for the winter and exacerbating a crisis that has prompted emergency measures by governments and painfully high utility bills. the consumers. It will take another five to seven days for the turbine to reach Russia if there are no problems with logistics and customs, Kommersant reported. The paper said the turbine will be shipped from Germany by ship and then transported overland via Helsinki, Finland. The equipment is expected to arrive in Russia around July 24. Germany’s economy ministry said on Monday it could not provide details on the turbine’s location. However, a ministry spokesman said the turbine was a spare part that was only to be used from September, meaning its absence could not be the real reason for the drop in gas flows before the maintenance. With reports from Reuters
