War in Ukraine has created a major global energy crisis. It has affected many countries worldwide. In fact, many people believe Russia is using the gas supply to control Europe.
Recently, Russia closed down a turbine on the Nord Stream 1 pipeline, which cut down the amount of natural gas they send to Europe. Nord Stream 1 pipeline stretches from Russia to Germany, and it can send up to 170 cubic metres of gas per day. This pipeline is owned by Nord Stream AG. Its major shareholder is the Russian energy company Gazprom.
Last July, Gazprom shut down Nord Stream 1 due to maintenance work. After reopening it, they diminished the amount supplied to 20m cubic metres. The German government says Gazprom has no valid reasons to limit their supply.
After Russia’s announcement to restrict the gas supply, gas prices in Europe soared by 10% in one day. Gas prices are now significantly higher than last year. As a consequence, European countries are looking for other alternatives. Italy and Spain, for example, want to import gas from Africa. Germany started buying gas from Qatar and also increased its use of coal. Experts predict these effects could slow down European economies, accelerate a recession and push up inflation.