Russia’s decision not to resume gas flows through the main Nord Stream 1 pipeline to Germany has prompted a surge in wholesale costs, intensifying concerns for supplies across Europe for the coming winter.
State-owned Gazprom scrapped plans to restart pumping limited volumes on Saturday after a maintenance shutdown, blaming a turbine leak.
The decision – which European governments say is retaliation for Western sanctions over Russia’s war in Ukraine – was inevitably reflected when markets opened for business on Monday morning.
The leading European benchmark, known as the Dutch TTF, which has risen by more than 400% over the past year, was up by a further 30%.
The contract for October delivery in the UK – which is not reliant on Russian energy but exposed to the wider market pressures – was 25% higher.
Stock markets also saw turmoil with Germany’s DAX almost 2% down on the back of Russia’s decision.
The FTSE 100 in London opened 0.7% lower thanks only to its strong line-up…
