Gas prices in Europe have surged after Russia’s state-owned energy firm said it would cut shipments through a major supply route.

Gazprom said it was turning the tap off to the Yamal pipeline, which runs to Germany via Poland, following fresh sanctions imposed by Moscow against European gas companies.

These include one of its former subsidiaries Gazprom Germania and Europol Gaz, which owns the Polish section of the pipeline.

The affected entities are mainly based in countries that have imposed sanctions on Russia in response to its invasion of Ukraine.

Germany’s economy minister Robert Habeck expected the fall in Russian gas deliveries could be compensated for on the market, albeit at a higher cost.

He said: “On the whole, the situation is escalating.

“It’s becoming evident once again that Russia is using energy as a weapon.”

As a result of the latest retaliation by Moscow, future contracts linked to the TTF hub, the European wholesale gas price benchmark, have seen marked increases and will further add to the burden on households and businesses.

Although German gas storage is around 40% full, it is still low for the time of year and stocks need to be built up in time for winter, when heating demand will rise and global supply shortages will hit.

Read more:
Putin ‘humiliating himself on world stage’
Russia’s fury as Finland moves towards NATO membership

Kaushal Ramesh, senior analyst at consultancy Rystad Energy, said: “Storage levels are currently sufficient to last through most of 2022, even if Russian flows were to stop instantly, barring any unexpected weather events – but the outlook for winter 2022 supply is now a lot more pessimistic.”

Gazprom said in a statement: “A ban on transactions and payments to entities under sanctions has been implemented.

“For Gazprom this means a ban on the use of a gas pipeline owned by Europol Gaz to transport Russian gas through Poland.”

Moscow’s sanctions came just a day after Ukraine shut down the flow of a Russian gas to Europe from a pipeline, which runs through the country, blaming interference by occupying Kremlin forces.

It was the first time exports via Ukraine have been disrupted since the invasion.

Related posts:

Spectacular show as Italian volcano Mount Etna erupts ‘What we have missed’: Photos capture global hopes for life in post-COVID future Nine people killed by landslide as India battles heavy monsoon rains Former Manchester United star Patrice Evra reveals he was sexually abused as a teen Award-winning Swedish rapper shot dead in suspected gang attack ‘No time to lose’: Global-warming greenhouse gas levels in atmosphere hit record high Children among at least 45 dead in Bulgaria bus fire Brazil foreign minister ‘surprised’ by Amazon deforestation spike Man convicted of British student Meredith Kercher’s murder is freed early from jail Four dead and one missing after avalanche in Austrian Alps Vladimir Putin turns to China and Xi Jinping amid rising tensions with western leaders over Ukraine Fortitude and flowers: Through heart-breaking scenes of war, remarkable kindness is shown