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Tag: Gazprom OAO

  • Russia nears gasoline shutdown in Europe as Germany rejects claims it can not satisfy contracts

    Russia’s power large Gazprom has mentioned it can’t fulfil its gasoline contracts with Europe.

    Bloomberg | Bloomberg | Getty Pictures

    LONDON — Russia’s power large is threatening to ship much less gasoline to Europe — however Germany, certainly one of its primary importers, has rejected the speculation.

    Majority state-owned Gazprom mentioned Monday that because of unforeseeable cases it isn’t ready to agree to gasoline contracts in Europe.

    Germany’s power company, Uniper, showed to CNBC that Gazprom had claimed “pressure majeure” on its provides. Pressure majeure, a criminal time period, happens when unforeseeable cases save you one birthday party from enjoyable its contractual tasks, in idea absolving them from consequences.

    “It’s true that we have got won a letter from Gazprom Export wherein the corporate claims pressure majeure retroactively for previous and present shortfalls in gasoline deliveries. We imagine this as unjustified and feature officially rejected the pressure majeure declare,” Lucas Wintgens, spokesperson for Uniper, informed CNBC’s Annette Weisbach.

    RWE, every other German power corporate, showed to CNBC that it had additionally won a pressure majeure realize from Gazprom.

    Gazprom was once now not right away to be had for remark when contacted via CNBC on Tuesday.

    Officers in Germany and in other places in Europe have turn out to be an increasing number of enthusiastic about the potential of a whole shutdown of gasoline provides from Russia. Those fears intensified after Nord Circulate 1 — a key gasoline pipeline from Russia to Germany — was once closed previous this month for upkeep paintings, with some doubting that flows might be absolutely restored after the paintings is concluded on July 21.

    Eu countries won about 40% in their gasoline imports from Russia prior to it invaded Ukraine. Eu officers had been scrambling to finish this dependency, however it is a pricey procedure and tough to reach in a single day.

    The Eu Fee, the chief arm of the EU, has introduced recent gasoline offers with the US and Azerbaijan, for example, because it seeks new providers of fossil fuels.

    “That is obviously uncharted territory and exceptional on this shape,” Andreas Schroeder, head of power analytics at analysis corporate ICIS, informed CNBC’s “Squawk Field Europe” on Tuesday.

    “While the Eu Union has controlled in lowering the volumes of imports of hydrocarbons in Russia, they did not arrange to cut back the fee they pay.”

    Eu gasoline costs have soared on account of decrease flows from Russia. However those upper costs imply that Russia can ship much less gasoline to Europe and make the similar — or much more — cash than prior to. Schroeder known as this the “offsetting impact.”

    The front-month gasoline value on the Dutch TTF hub, a Eu benchmark for herbal gasoline buying and selling, was once round 1% upper at 159 euros ($163) consistent with megawatt-hour Tuesday morning. Costs are up extra 600% during the last yr.

    Correction: The front-month gasoline value on the Dutch TTF hub was once round 1% upper at 159 euros ($163) consistent with megawatt-hour Tuesday morning. An previous model misstated the U.S. greenback determine.

  • Russia accused of ‘blackmail’ after halting gasoline provides to 2 Eu nations

    Russia’s gasoline provides to Japanese Europe are having a look extremely unsure after the rustic’s state-run gasoline large Gazprom instructed Poland and Bulgaria that it will halt provides.

    The transfer comes after each nations refused Moscow’s contemporary call for to pay for gasoline provides in rubles, but in addition coincides with a pointy upward thrust in tensions between Western allies and Russia because the battle in Ukraine continues into a 3rd month.

    Early Wednesday morning, Gazprom launched a commentary pronouncing it had halted provides to Poland and Bulgaria — each heavy shoppers of Russian gasoline — because of bills no longer being made within the Russian foreign money. It stated provides would resume as soon as those bills have been made.

    Gazprom staff at the Yamal Peninsula in Russia.

    Bloomberg | Bloomberg | Getty Pictures

    Within the commentary, Gazprom warned each nations in opposition to any “unauthorized withdrawal” of gasoline provides flowing thru their territories.

    “Bulgaria and Poland are transit states. In case of unauthorized withdrawal of Russian gasoline from transit volumes to 3rd nations, provides for transit will likely be decreased via this quantity.”

    Herbal gasoline costs surged in Europe on Wednesday morning. The Dutch wholesale gasoline contract for the day-ahead, a benchmark for Europe, rose 24.2% to 115.75 euros ($122.40) according to megawatt hour, whilst the U.Ok. herbal gasoline worth for June rose round 20 pence to 222 pence ($2.78) a therm.

    Forewarned, forearmed

    Poland’s state-owned oil and gasoline corporate PGNiG stated Gazprom had knowledgeable it on Tuesday that it will halt provides which are dropped at the rustic by way of the Yamal pipeline, beginning Wednesday morning.

    However after shedding to 0 previous Wednesday, bodily gasoline provides looked as if it would edge up once more, knowledge from the Eu Union community of gasoline transmission operators confirmed, in keeping with Reuters. Poland, alternatively, stated the provides had certainly been halted.

    Bulgaria has no longer showed that its provides were stopped however its high minister, Kiril Petkov, described the transfer as “blackmail” and stated any halt in provides can be a breach of contract. Bulgaria’s power minister, Alexander Nikolov, stated provides to shoppers have been assured for a minimum of a month forward, Reuters reported.

    Different trade leaders and executive officers have slammed the transfer via Russia.

    The U.Ok.’s deputy high minister, Dominic Raab, stated the transfer would upload to Russia’s standing as an “financial pariah” whilst James von Moltke, leader monetary officer of Deutsche Financial institution, instructed CNBC on Wednesday that it used to be a “being worried signal” and that whilst it may not have a right away financial affect, “it stays a chance for the entire outlook.”

    Kremlin spokesman Dmitry Peskov brushed aside accusations that Moscow used to be the use of its gasoline provides to blackmail Eu international locations Poland and Bulgaria, pronouncing Russia used to be a competent power provider. He additionally declined to mention what number of nations had agreed to change to paying for gasoline in rubles, Reuters reported.

    Even sooner than the invasion of Ukraine, gasoline provides had change into some extent of hysteria between Russia and its Eu neighbors with the Kremlin accused of the use of power provides, with any restrictions impacting dramatically on marketplace costs, as a geopolitical weapon.

    Russia vehemently denied this, with Russian President Vladimir Putin calling the accusations “blather” and pronouncing the U.S. had contributed to a world power disaster ultimate fall.

    However Russia’s newest toying with its Eu power shoppers comes, ostensibly, after its call for to be paid in rubles for its gasoline used to be in large part refused via importers within the area, together with Poland and Bulgaria. They stated the call for is a breach of contract whilst analysts stated the transfer used to be some way for Russia to take a look at to spice up the ruble as world sanctions imposed as a result of its unprovoked invasion of Ukraine hit its financial system and foreign money.

    State of affairs being monitored

    Within the interim, Japanese Europe’s gasoline provides seem to be in flux, and below risk, as Western fortify for Ukraine — and force on Russia — most effective will increase.

    Poland’s PGNiG stated in a commentary Tuesday that the corporate is tracking the placement “and is ready for quite a lot of eventualities,” and to obtain gasoline from different resources. It stated the rustic these days has sufficient gasoline in garage, alternatively, and is assembly call for.

    Bulgaria imported virtually 73% of its herbal gasoline from Russia in 2020, EU knowledge confirmed, whilst Poland imported round 45% of its herbal gasoline from Russia in the similar yr, simply above the EU-wide moderate of round 40%, appearing the bloc’s important dependence on Russian gasoline imports.

    Moscow’s invasion of Ukraine has induced the EU to hasten a discount in Russian power imports and has led to the already-controversial Nord Flow 2 gasoline pipeline between Russia and Germany, any other nation closely reliant on Russian gasoline, to be deserted.

    Now not all nations have refused Russia’s call for to pay for gasoline in rubles.

    Hungary — whose strongman chief Viktor Orban has friendlier ties with Putin — has damaged ranks with its EU companions via agreeing to pay for Russian gasoline in rubles.

    Its overseas minister stated Wednesday that the rustic is receiving Russian gasoline in keeping with its contract with Gazprom by way of Bulgaria and Serbia.

    “I wish to guarantee everybody that the non-delivery of gasoline shipments to Bulgaria does no longer imply a halt in transit shipments by way of Bulgaria,” International Minister Peter Szijjarto stated on his Fb web page in feedback translated via Reuters.

    He stated Hungary’s subsequent fee legal responsibility for Russian gasoline is due in mid-Would possibly, and the rustic will switch its fee in euros to Gazprombank, the place the quantity will likely be transformed into rubles.

  • Oil primary Shell to write down off as much as $5 billion in belongings after exiting Russia

    Royal Dutch Shell merchandise in Torzhok, Russia.

    Andrey Rudakov | Bloomberg | Getty Pictures

    Shell has introduced that it is going to write off between $4 and $5 billion within the price of its belongings after pulling out of Russia following the rustic’s remarkable invasion of Ukraine.

    Thursday’s announcement provides a primary glimpse on the attainable monetary affect to Western oil majors of exiting Russia.

    “For the primary quarter 2022 effects, the post-tax affect from impairment of non-current belongings and further fees (e.g. write-downs of receivable, anticipated credit score losses, and arduous contracts) in terms of Russia actions are anticipated to be $4 to $5 billion,” Shell mentioned in a commentary Thursday.

    “Those fees are anticipated to be known and subsequently won’t affect Adjusted Profits.”

    Additional main points of the affect of ongoing tendencies in Ukraine can be set out in Shell’s first-quarter income record on Would possibly 5, the corporate mentioned.

    Shell was once compelled to ask for forgiveness on March 8 for getting a closely discounted consignment of Russian oil two weeks after Russia’s invasion. It due to this fact introduced that it was once retreating from its involvement in all Russian hydrocarbons.

    The corporate mentioned it could now not acquire Russian crude oil and would close its carrier stations, aviation fuels and lubricants operations in Russia. The corporate had already vowed to go out its joint ventures with Russian gasoline large Gazprom and its comparable entities.

    It is a breaking information tale and can be up to date in a while.

  • Shell defends determination to shop for discounted oil from Russia

    Shell formally modified its title on Friday, ditching “Royal Dutch”, which has been a part of its id since 1907.

    Rick Wilking | Reuters

    Oil primary Shell has sought to shield its determination to shop for a heavily-discounted consignment of oil from Russia, pronouncing it might devote the earnings to a fund devoted to humanitarian help for Ukraine.

    On Friday, Shell bought 100,000 metric heaps of flagship Urals crude from Russia. It used to be reportedly purchased at a report bargain, with many corporations shunning Russian oil because of Moscow’s unprovoked invasion of its neighbor. The acquisition didn’t violate any Western sanctions.

    Shell stated in a observation overdue Saturday that it have been in “intense talks with governments and proceed to practice their steering round this factor of safety of provide, and are acutely conscious we need to navigate this quandary with the maximum care.”

    “We did not take this determination calmly and we perceive the energy of feeling round it,” the observation learn.

    The corporate has confronted heavy complaint from Ukraine’s Overseas Minister Dmytro Kuleba, who desires firms to chop all industry ties with Russia.

    “One query to Shell: does not Russian oil odor Ukrainian blood for you?” Kuleba stated in a tweet Saturday.

    Talking to CNBC Monday, Kuleba introduced a scathing assault on corporations nonetheless doing industry with Russia, pronouncing that some primary oil firms may in finding themselves at the improper aspect of historical past.

    “The sector will pass judgement on them accordingly. And historical past will pass judgement on them accordingly,” he informed CNBC’s Hadley Gamble.

    Shell stated previous this week that it meant to go out its joint ventures with Russian fuel massive Gazprom and its similar entities.

    In the meantime, rival BP introduced Sunday final week that it used to be offloading its 19.75% stake in Rosneft, a Russian-controlled oil corporate, doubtlessly hitting the British oil primary with a pricey $25 billion rate.

    In its new observation, Shell stated Saturday that the corporate welcomed “any route or insights” from governments or policymakers.

    “We will be able to proceed to select choices to Russian oil anyplace imaginable, however this can’t occur in a single day as a result of how important Russia is to world provide,” the corporate stated within the observation.

    —Jessica Bursztynsky contributed to this text.