The Deputy Prime Minister of Russia recently announced that their country is ready to resume the gas suppliers to European countries once again. This time, the gas will be supplied through the Yamal-Europe pipeline.
According to Novak, they still believe that the markets of Europe are very relevant. And with the current gas shortages, it seems like the right opportunity to resume gas supplies again.
The pipeline called Yamal-Europe had no problems whatsoever and was only stopped due to reasons of political nature. But after this announcement, there are hopes once again that the prices of energy will drop in Europe.
The pipeline in question is kept as a reserve and was last time used in December 2021 (almost 1 year ago). At that time, it was Poland that stopped buying gas from Russia and moved towards Germany's stored gas reserves.
During the month of May, Poland rejected the Russian demands for payment in Roubles. As a result of this, Gazprom moved towards cutting the gas supply to Poland and even went as far as to sanction the company that owned the Yamal-Europe pipeline in Poland.
It was also announced by Novak that they are also discussing supplying additional gas through Turkey. But for that, they would have to build a hub there first.
During 2022, there are reports that Russia supplied around 21 billion bcm of LNG to European countries. According to Novak, they increased the gas supply by around 19.4 bcm for the current year. And eventually, the increase will be around 21 bcm.
But it still remains to be seen whether Europe will further diversify its energy mix and move away from Russia or not. Because of the way things are going, it seems that the European countries are now exploring their options besides Russia. For starters, the oil-producing countries in the middle east also have vast gas reserves and can supply LGN to Europe.