Germany says escalating tensions over Ukraine are one factor in Nord Stream 2 not getting green light
\n Europe
\nGas prices across the UK and Europe are on course to return to record highs after Germany said a controversial pipeline from Russia could not be approved amid deepening tensions on the Ukrainian border.
\nThe German foreign minister, Annalena Baerbock, said the Nord Stream 2 pipeline could not be given the green light in its current form because it did not meet the requirements of EU energy law.
\nBaerbock added that the escalating tensions on Russia\u2019s border with Ukraine, where the Kremlin has reportedly amassed 100,000 troops, was \u201calso a factor\u201d because Berlin had agreed with the US that the pipeline should not be used as a political weapon in Moscow\u2019s deteriorating relationship with Kyiv.
\nIn response, Europe\u2019s benchmark gas price climbed by around 10% on Monday to a high of \u20ac116.75 (\u00a3142.56) per megawatt hour (MWh), just shy of the record closing price of \u20ac116.78\/MWh set in early October, according to market price data from ICIS.
\nThe UK\u2019s gas market price climbed to 296.35p a therm on Monday, just below the record closing price of 298.475p on 5 October, according to ICIS data.
\nEurope has experienced record high gas prices in recent months owing to a global squeeze on gas supplies. This has been compounded by a slowdown of Russian gas exports to the continent as negotiations over Nord Stream 2 have stalled.
\nBaerbock\u2019s rejection of the pipeline followed a decision last month to suspend the permission process because the project\u2019s ownership structure failed to comply with the EU\u2019s gas directive.
\nTom Marzec-Manser, the head of gas analytics at ICIS, said some energy traders had held out hope that the pipeline would be able to deliver some gas this winter, and had reacted to signs of a further potential delay by driving prices back towards record highs.
\nDmitry Peskov, the Kremlin spokesperson, told the Russian news agency Interfax the Nord Stream 2 development company was \u201cworking with the regulator and fulfilling all its demands. We just need to be a bit more patient.\u201d
\nGermany has faced pressure from the US to block Nord Stream 2 over concerns that Russia could use the pipeline as a political weapon. The pipeline runs from Russia to Germany beneath the Baltic Sea, bypassing Ukraine.
\nThis could make it easier for Russia to increase its military aggression towards Ukraine without fear of disruption to its gas exports, according to critics of the Kremlin.
\nUS and EU leaders fear a looming attack on Ukraine by Russia, which annexed Crimea in 2014. Kyiv has estimated that about 100,000 Russian troops are now deployed along the Russia-Ukraine border.
\nOctober\u2019s record UK gas market highs ignited fears that factories would need to shut this winter to guard agains the financial blow of rocketing costs.
\nThe surge in prices is also likely to take its toll on Britain\u2019s struggling energy supply market after the collapse of 24 suppliers in a little over 12 weeks and record hikes in home energy bills.
\nThe European Commission has reportedly put forward a voluntary system for EU countries to buy gas together to form strategic reserves to safeguard against a supply squeeze caused by a global surge in demand and lower exports from Russia.<\/p>\n","protected":false},"excerpt":{"rendered":"
Germany says escalating tensions over Ukraine are one factor in Nord Stream 2 not getting green light Europe Gas prices across the UK and Europe are on course to return to record highs after Germany said a controversial pipeline from Russia could not be approved amid deepening tensions on the Ukrainian border. The German foreign […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-232934","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-world"},"yoast_head":"\n