Russia cuts down natural gas supplies to the most significant European economies Germany and France which are mainly dependent on Russian gas for most of their industries.
Europe is currently facing an energy crisis after the US imposed sanctions on major Russian energy suppliers after it invaded Ukraine in February.
Reasoning For The Gas Cuts
So far, Russia has halted the natural gas supply via its Nord Stream 1, which would remain until 2 September due to technical issues in the system. The Russian gas giant, Gazprom, has claimed that Western sanctions cause the cut in gas supplies.
Why Germany And France Are So Dependent On Russian Gas?
Germany fulfills 40% of its gas and 30% of oil demand from Russian energy suppliers. It can create serious problems for major European economies already facing soaring energy prices at home.
France has also accused Russia of using gas as a ‘‘Weapon of War’’ after Russia cut down gas supplies to France’s biggest gas supplier, Engie, saying it has to pay for July deliveries. “At the close of the business day on August 30, Gazprom Export did not receive full payment for gas supplied to Engie (France) in July under the existing contracts,” Gazprom said in a statement.