Russia's Gazprom declares force majeure on some gas supplies to Europe

Russia's Gazprom has declared force majeure on gas supplies to Europe to at least one major customer, according to the letter dated July 14 and seen by Reuters on Monday.

The letter said Gazprom, which has a monopoly on Russian gas exports by pipeline, could not fulfill its supply obligations owing to "extraordinary" circumstances outside its control.

A trading source said the letter concerned supplies through the Nord Stream 1 pipeline, a major supply route to Germany and beyond.

As it became known recently, Canada sent a gas turbine for Nord Stream on July 18. The turbine is expected to arrive in Russia on July 24, after which it will take a few more days to set it up. In addition, Russia uses less than 40% of the reserved capacity through the Ukrainian GTS, pumping about 40 mcm per day (more than 109 mcm per day are reserved).

Thus, Gazprom's letter looks like another blackmail of European companies to prevent Europe from preparing for the winter period by accumulating enough gas in storage.