European gas prices surged, share prices slid and the euro sank on Monday after Russia stopped pumping gas to Europe via a major supply route. Hence, gas prices have soared on concerns over energy supplies after Russia announced it would not re-open its main gas pipeline to Europe.
The Dutch month ahead wholesale gas price, a benchmark for Europe, was up as much as 30% in early trading on Monday.
The Nord Stream 1 pipeline had been due to reopen on Saturday after being shut for three days.
But Russia’s state-owned energy firm Gazprom said it had found a leak.
Europe has accused Russia of using gas supplies to blackmail European countries because of the Ukraine conflict, which Moscow denies.
EU governments are racing through packages worth billions of dollars to prevent power companies being crushed by a liquidity crunch and to protect households from soaring bills, after Russia’s state-controlled Gazprom said it would stop pumping gas via the Nord Stream 1 pipeline due to a fault.
Europe has accused Russia of weaponising energy supplies in retaliation for Western sanctions imposed on Moscow over its invasion of Ukraine. Russia says the West has launched an economic war and sanctions have hampered pipeline operations.
A host of European power distributors have already collapsed and some major generators could be at risk, hit by caps that limit prices rises they can pass on to consumers or caught out by hedging bets with gas prices now 400% more than a year ago.
