Europe worries over winter gas shortages, as Russian pipeline remains closed
Driving the news: European governments expected Gazprom, the Russian energy company, to restart flows at the Nord Stream 1 pipeline, but Russia kept it closed, citing maintenance issues.
- Hours before the pipeline was set to reopen, Gazprom said problems had been found during inspections, so it would remain closed "until they were eliminated," according to the New York Times.
- No timeline for the pipeline's reopening was given.
The big picture: Russia's decision to shut down gas supplies is another sign "that energy has become a proxy fight in the Ukraine war," per the New York Times.
- Europe has accused Russia of staging an economic war as a result of the West's reaction to Russia's unprovoked invasion of Ukraine.
What we're watching: Europe is keeping an eye on natural gas prices as it nears winter.
- Natural gas prices in Europe dropped 30% this past week, a result of how the continent's market-based energy system has struggled to remain stable since Russia's invasion of Ukraine began.
The bottom line: "Russia is taking advantage of Europe’s vulnerability on natural gas, driving up the price of the fuel to extremely high levels across Europe and creating fears of widespread hardship this winter," according to NYT.
Go deeper: The European gas market just got weirder