Russia

Russia Can Increase Gas Supplies to EU if There Are Requests, Envoy Says

BRUSSELS (Sputnik) - Russia can increase the volume of natural gas it supplies to European countries once there is a request for it, which is currently not being made due to high spot market prices, Russian Permanent Representative to the EU Vladimir Chizhov told Sputnik in an interview.
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Last week, European Commission President Ursula von der Leyen said that the Russian gas energy producer Gazprom was reluctant to increase gas deliveries to Europe on its own initiative, despite being aware of high demand.

"To sell gas, you need someone to declare in advance their willingness to buy it. After all, supplies through the gas pipeline cannot be rolled back. And potential consumers in Europe estimate the costs at spot prices and, obviously, think it is better to weather the current spike. Sooner or later prices will go down, no one doubts that", Chizhov said.

He added that there is gas remaining in European storage, therefore the European Union intentionally waits to request additional gas supplies.

"If the winter was harsher and reserves were exhausted faster, surely European companies would buy additional gas even at high prices. But so far, the winter is generally mild, so there are no requests, and since there are none, there are no supplies", Chizhov said.

FILE PHOTO: Flames come out of a domestic gas ring of an oven in Durham, Britain, September 23, 2021.
He also claimed that the ongoing crisis with the gas prices the European market was meant to occur, given a deliberate policy of the European Commission.

"The current crisis on the European gas market is a problem that was bound to appear eventually. Its origins lie in the European Commission's policy of abandoning long-term gas contracts and shifting to trading on the spot markets. We have been saying for a long time that this would not do any good. This is a market, there can always be considerable price fluctuations," Chizhov added.

Europe has been facing a surge in gas prices throughout last year, with annual costs of natural gas increased more than threefold. The prices began to climb last spring when the average TTF spot price fluctuated between $250 and $300 per thousand cubic meters. In December 2021, the gas prices have hit an all-time record of $2,190 per thousand cubic meters.
Analysts attributed the unprecedented rise in gas prices in Europe to increased consumers’ demand amid the low efficiency of renewable energy sources, particularly wind power generation, as well as decreased internal gas production.
Gazprom and Russian officials have repeatedly stated that the EU intentional policy of moving away from long-term contracts to spot ones enabled higher prices and lower medium-term predictability. Russia says it stands ready to increase gas supply to Europe, but Gazprom needs long-term contracts, as greater investments will be required.
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