European Union heaves sigh of relief as Russia restarts gas supply

Russia says Ukrainian drone struck nuclear plant but caused no damage

Russia resumed pumping gas via its biggest pipeline to Europe on Thursday after a 10-day outage, allaying some of Europe’s immediate supply fears but not enough to end the threat of rationing to cope with potential winter shortages.

Supplies via Nord Stream 1, which runs under the Baltic Sea to Germany, were halted for maintenance on July 11 but, even before that outage, flows had been cut to 40 per cent of the pipeline’s capacity in a dispute prompted by Russia’s invasion of Ukraine.

Thursday’s flows were back at that 40 per cent capacity lev­el, Nord Stream figures show­ed, a day after Russian Presi­dent Vladimir Putin warned that flows could be reduced further or even stop. The resumption of Nord Stream supplies at levels that remain well below the pipeline’s capacity means Germa­ny, which is particularly reliant on Russian fuel, and other European economies are still struggling to find enough gas for winter.

“In view of the missing 60 per cent and the political instability, there is no reason yet to give the all-clear,” German network regulator president Klaus Mueller wrote on Twitter.

Gas flows via other pipeline routes, such as Ukraine, have also fallen since Russia invaded its neighbour in February, in what Moscow calls a “special military operation”.

Germany and several other states have already activated the first stages of emergency plans that in some cases could lead to rationing. 

The EU aims to have gas storage facilities 80 per cent full by November 1, while some EU states have higher targets. Inventories are now about two-thirds full, with a slowing pace of refilling. 

Sergei Lavrov, the Russian foreign minister, has said that Moscow wants to permanently occupy broad swaths of southern Ukraine in the clearest signal yet that the Kremlin is preparing to launch a new round of annexations. In televised remarks, Lavrov also said Russia may seek more territory along the frontlines in Ukraine. Russia on Wednesday accused Ukraine of firing two drones at a nuclear power station in the partially occupied Ukrainian region of Zaporizhzhia on Monday but said the reactor was undamaged.

HSBC has agreed to sell its Russia business to Expobank, signing a deal shortly before Moscow said it would move to block the sale of foreign banks’ Russian businesses in retaliation for restrictions imposed on its own lenders.