This is clearly uncharted territory and unprecedented in this form.Andreas Schroeder, head of energy analytics at research company ICIS, on Russia’s largest energy company threatening to not send natural gas to Europe.
Why It Matters: Europe is dependent on Russia for natural gas; the continent received about 40% of its gas imports from Russia before the Ukraine invasion (CNBC). There's been growing concern about Russia cutting off Europe from its needed energy supply.
What's Going On: Gazprom, the largest gas company in both Russia and the world, supplies natural gas to Europe and has said due to a “force majeure” (translation: "an act of God" — unexpected circumstances), it cannot fill its contracts. Germany has rejected this claim.
Context: Delivery of natural gas through a major pipeline had stopped due to scheduled maintenance. Now there's a question whether deliveries will start back up again on Thursday. Gazprom has already missed deliveries in recent weeks.
Remember: Russian President Vladimir Putin begins his trip to Tehran this week. Gazprom and Iran's major energy provider signed a deal Tuesday, before his arrival.
by Jenna Lee,