Russian gas pipeline remains shut, energy-intensive aluminium industry cuts production

The supply resumption of one of Russia's main gas routes to Europe on 3rd September 2022 was scraped, which sparked fears of winter fuel shortages. It highlighted a dispute between Gazprom and Siemens Energy over repairs to the pipeline.

After its short maintenance, the Nord Stream 1 pipeline was expected to resume its flow this week as European governments battle to control soaring gas prices. In spite of this, Russia abruptly cancelled the restart, citing an oil leak in a turbine.

In the aftermath of the Russia-Ukraine geopolitical crisis, Europe has accused Russia of weaponizing energy supplies, whereas Moscow blames Western sanctions and technical difficulties.

Nord Stream's latest shutdown, which Russia says will last for as long as necessary to complete repairs, has added to fears that could push significant economies into recession or energy rationing.

Russian oil was discovered leaked on 2nd September as the Group of Seven (G7) wealthy democracies planned to impose a price gap on Russian oil, designed to shrink Russian resources.

Sweden unveiled a financial support package for energy companies on Saturday due to gas shortages.

Eva Magdalena Andersson, the first female Prime Minister of Sweden, said, "If we do not act, there is a serious risk of disruptions in the financial system, which in the worst case could lead to a financial crisis."

The President of the European Commission, Ursula von der Leyen, previously stated, "The bloc should impose a price cap on Russian pipeline gas to foil Russia's attempts to manipulate the market."

She added, "We see that the electricity market does not work anymore because it is massively disrupted. A gas price cap on Russian pipeline supplies could be proposed at the European level.

The former Russian President & Prime Minister, Dmitry Medvedev, said, "Russia would turn off supplies to Europe if Brussels imposed such a cap."

The wholesale gas price has risen 400% since August 2021, squeezing households already facing a cost-of-living crisis and forcing some energy-hungry industries, such as aluminium producers, to scale down output.

The primary aluminium production process is highly energy-intensive, with electricity consuming a high cost. Research and development are needed to develop innovative alternative production methods that reduce primary production processes and combustion emissions and make equipment and operations more energy-efficient. 

On 3^rd September 2022, Dmitry Medvedev said, "The US and its allies were trying to provoke Russia's breakup, and such attempts were tantamount to a chess game with death."