Europe Energy Crisis Explained!

Europe Energy Crisis, we know European countries depend on the Russian gas pipeline, but how much? For starters, North Macedonia is 100% dependent, Finland 94%, Bulgaria 77%, Slovakia 70%, Germany 49%, Italy 46% and Poland 40%. The term Europe energy security is heard in the news nowadays. Why is it making headlines? What is the threat posed by Russia? What is the Nord stream? What is the scope of the gas crisis in Europe? Let's learn answers to all these questions.

NORD STREAM PIPELINE

Nord I was made functional in 2011, connecting Vyborg, Russia to Greifswald, Germany.

Nord II, made functional in 2021 connecting Ust-Luga, Russia to Greifswald, Germany.

The Nord Stream I pipeline passes through the Baltic Sea & transports 55 billion cubic meters per year. Nord Stream II pipeline become infamous the route is supposed to double in capacity to 110 Billion cubic meters per year and to be functional for the next 50 years. Both projects pass through exclusive economic zones of Russia, Finland, Sweden, Denmark & Germany and are controlled by Russia's state-controlled energy company "Gazprom".

MARCH

US put sanctions on Nord stream II but not the entire project. Sanctions were put on the company that installed and monitored the pipeline in the Baltic sea.

JUNE

Russia reduced its gas supply to Germany, France, Netherland, Poland, Bulgaria, Finland, Denmark, Austria, Slovakia and other nations.

WHY NOT PUT COMPLETE SANCTIONS ON THE NORD STREAM PIPELINE?

Simply put, a complete sanction of the Nord Stream II pipeline could have possibly resulted in Russia cutting the supply of Gas to Europe through Nord I pipeline, instantly causing chaos in Europe. Secondly, the west wishes to play a game of demand and supply, believing a sanctioned Russia will be a docile Russia, but nothing much happened.

West and allied nations were certain to have crippled Russia with sanctions but Russia's preparedness provided a strong counterattack. Whereas Europe lacked the same foresight and blindly followed America, with Russia still standing tall, the European economy is starting to crumble. High inflation, food shortages and energy crisis paired with the winter just around the corner is quite unfortunate, so much so, that it seems like it is Europe that had been put under sanctions, not Russia, does it not?

ISSUE OF NORD STREAM I

The gas turbine provided by Russia to Germany for its intended purposes was held in Canada for repairs by Siemens co., delivery of the Nord Stream I gas turbine to Germany from Canada after maintenance was not in line with the contract according to the senior executive of Gazprom. Especially while Canada put sanctions on the Russian economy. Thus, Russia threatened Europe to cut its energy supply and demanded the turbine return to Germany.

This may not benefit Russia but is clearly used as a show of strength in making Canada bend sanctions by issuing a 'time-limited and revocable permit'. Russian game makers are clearly exploiting all the possible opportunities and had set up the deadline of the ongoing war against Ukraine until after the winter.

The entire fiasco is portrayed by the western media as Russia using arm-twisting diplomacy to raise the prices of fuel in the European market. The thing is, on one hand, the West issues sanctions, damages Russia's economy and leaves Russia with so little breathing space, on the other hand, it expects mercy and fair dealing. Now even a high-schooler will realise such a claim is naive and blatantly stupid.

"Canada: Shipping the turbine to europe would support Europes ability to access reliable and afffordable energy as they contined to transition away from Russian oil and gas"

Canada mentions the transition to affordable oil and gas along with sanctions on Russia, yet the west wants reasonable gas prices, point is, Russia is no longer threatened by the west and its allies. Russia have access to the countries in the east and with the completion of the International Transportation Corridor (INSTC), it will have the necessary infrastructure to rebuild its economy. Russia had even sent a consignment to India through INSTC. As for the access to proper market, Russia has that covered as well. The most efficient access point to the eastern economy is through BRICS, the grouping is 40% of the world population and 1/4th of the global GDP, Russia certainly has plenty of markets to explore and expand to.

EUROPE'S SOLUTION TO THE ENERGY CRISIS

1. European nations can try storing gas supply and stock up for winter, very much like what Germany's vice chancellor Robert Habeck announced to reduce consumption and increase storage. A short-term solution and ineffective.
2. Discover new vendors for their energy supply. Example Norway, but it will be difficult and very degrading to Norway's ecology to supply entire Europe.
3. Approach the middle east with deep pockets, cause the vendors have been waiting to extort money 'A desperate consumer is the best consumer '. These companies will be free to dictate terms to their own liking.
4. Re-engage old power plants, like Germany firing up its coal plants to avert the coming energy crisis.

COME WINTER, EUROPE ENERGY CRISIS STARTS

After stalling for a few more months Russia will play its card and reduce the supply of natural oil and gas if not shut it completely to Europe. This will cripple Europe, and force the west to disengage from Russia in the ongoing economic war. Thus, ensuring a win in both Ukraine and against the west and its allies.

CONCLUSION TO THE EUROPE'S ENERGY CRISIS

High prices and Inflation will result in industrial cutbacks and shutdowns of the factories causing unemployment to raise which will in return rise Inflation even more triggering a recession, and this will not be limited to Europe. The entire global economy will suffer, there are economies already going bankrupt and in crisis, imagine the entire Europe is in recession; damages will be cataclysmic.

The entire thing is already in motion, Boris Johnson PM of the UK and Mario Draghi PM of Italy, two of the most influential people and NATO members end up resigning. This is just the foreshadowing of what's to come, with an increase in the cost of living, there are going to be many more changes to Europe's leadership. 

This coming winter will certainly be stimulating.