- Russia's Gazprom said it may cut off flows to Europe via a pipeline in Ukraine as soon as next week.
- The route is the last remaining pipeline bringing Russian natural gas to western Europe, upping tensions ahead of the winter.
Russia's Gazprom has threatened to cut off natural gas flows to Europe as soon as next week via a pipeline in Ukraine, amplifying tensions in Europe as it faces a looming energy crisis this winter.
Gazprom said in a post on Telegram that some gas flows being kept in Ukraine were actually meant for its neighbor, Moldova. The state-run supplier estimated that Ukraine had around 52.52 million cubic meters of misdirected natural gas, and if that doesn't reach Moldova, it would start slashing flows to the Ukraine pipeline as soon as November 28, Bloomberg originally reported.
Dutch TTF futures, the European benchmark for natural gas, rose 2.9% shortly after Gazprom's announcement on Tuesday. Gas futures have already fallen around 60% from highs this summer, but they're still four times higher than the seasonal average, according to Bloomberg data.
The Ukraine pipeline sends around 43 million cubic meters of natural gas per day to Europe, and it's one of Europe's last remaining sources of Russian natural gas after Gazprom shut off flows via Nord Stream 1.
A cut to the Ukraine pipeline would amplify the supply shortage this winter. And although European Union gas stockpiles are nearly full, the International Energy Agency warned that even storage levels at 90% capacity may not prevent blackouts in the event of a total Russian gas cutoff.
That's sparked desperation in Europe, with nations ramping up purchases of Russian seaborne liquefied natural gas and LNG from the US, while turning to dirtier alternatives like coal and trash burning for fuel ahead of winter.
Mild weather has given gas prices some relief recently, but the upcoming winter months could be colder than average, according to the UK Meteorological Office – which spells trouble if Europe isn't able to scrape together enough alternative supplies.