Gazprom reported on its Telegram channel that a sequence of leaks in the Nord Stream turbine, coupled with a warning from Rostekhnadzor, forced the company to suspend the gas pipeline indefinitely until the faults could be repaired. The Kremlin had previously cautioned that the pipeline’s reliability was at risk due to limited reserves, noting that only one turbine remained active.
After a preventive shutdown, Russian gas deliveries to Europe via Nord Stream were planned to resume at 20% of the original capacity on September 3, 2022.
“Rostekhnadzor warned that the detected damage prevents safe operation of the gas turbine engine. It is essential to take appropriate measures regarding the serious violations and to halt the Trent 60 gas compressor unit,” the notice stated. When leaks were found in the turbine, Siemens inspectors present during the assessment confirmed the damage and signed the report. In total, three defects made further safe gas passage impossible.
Kremlin spokesperson Dmitry Peskov warned that the Nord Stream system faced a real risk to dependable operation. Asked whether repairs would occur soon, Peskov noted that a turbine was currently in use and there was no spare capacity—Gazprom bore full responsibility for any gaps—meaning the entire system’s reliability was in jeopardy.
“Time came”
Shortly before Nord Stream’s shutdown, Ursula von der Leyen, president of the European Commission, indicated that a price ceiling for Russian pipeline gas to Europe could be considered. She stated that it was time to cap the price and reduce Russia’s earnings from energy shipments.
The European Commission acknowledged that gas prices across the European Union were likely to stay elevated for an extended period, potentially through 2025. Dmitry Medvedev, vice-chair of Russia’s Security Council, commented on Telegram that Europe might face a complete cut-off of Russian gas if these approaches advance, underscoring a stark geopolitical divide.
On September 1, German Chancellor Olaf Scholz, speaking with residents of Essen, rejected the notion of stopping Russian gas imports. He argued that recovery would be harder if Russia’s supply were abruptly halted, even in small amounts, and urged avoiding unnecessary complications. Scholz attributed Germany’s resilience to timely measures such as replenishing storage, relying on coal and LNG facilities, and securing new import routes.
“Expulsion of Russian oil”
Meanwhile, on September 2, G7 finance ministers agreed to implement a price ceiling on Russian oil. The mechanism would publicly disclose the cap and adjust it based on technical data, with the aim of reducing Moscow’s income to fund the conflict in Ukraine. A broad international coalition would govern the price cap, and services for shipping Russian crude and products would be permitted only if oil is bought at or below the agreed ceiling.
The G7 emphasized plans to phase out Russian oil and related products from domestic markets, while acknowledging the need to mitigate consequences for the most vulnerable economies, including those dependent on energy imports. The price cap could be revised as conditions evolve and would be supported by measures to stabilize global markets without unduly harming energy access for poorer nations.
U.S. Deputy Secretary of State Victoria Nuland highlighted that a total ban on Russian energy could trigger higher prices elsewhere. If Moscow could redirect sales to other buyers, prices might rise in those markets, which is a key consideration in setting any cap.
The overarching goal is to reduce Russia’s ability to finance its military actions while maintaining steady energy access for consumers in North America and allied regions. Market observers continue to monitor how these policy shifts interact with global supply chains, LNG developments, and seasonal demand fluctuations.