IEA warns energy crisis in Europe 'perilous' as Russia may cut off 100% supply in winter

Paris based International Energy Agency (IEA) on Monday warned Europe about Russia’s speculated moves to totally squeeze natural gas flows issuing a red alert for bloc's energy crisis. The intergovernmental agency cautioned European nations that as Moscow is expected to cut off the 100% gas export to EU, the situation is "especially perilous" as Europe is at the epicentre of the energy market turmoil. EU "must reduce gas consumption now to protect itself against a winter shortage and must act now," warned the IEA in a statement.

Gas crisis in Europe 'building for a while': IEA chief

Dr Fatih Birol, Executive Director, International Energy Agency said that the gas crisis in Europe has been building for a while since Moscow launched an all out invasion of Ukraine in February, and that Russia’s role in it has been clear "from the beginning." IEA noted that Russia has been preventing a significant amount of gas from reaching Europe since five months ahead of launching brutal assault in Kyiv. "We raised the alarm further in January, highlighting how Russia’s large and unjustified reductions in supplies to Europe were creating “artificial tightness in markets” and driving up prices at exactly the same time as tensions were rising over Ukraine," Birol reiterated. The agency, in its renewed warning of gas supply cut has stressed that Europe shall not be under "any illusions" about the risks around Russian energy supplies. 

IEA recommended alternative energy options to halt the reliance on Russian energy, saying that all of Europe needs to maximise gas supplies from other sources; accelerate the deployment of solar and wind; make the most of existing low emissions energy sources, such as renewables and nuclear; ramp up energy efficiency measures in homes and businesses; and take steps to save energy by turning down the thermostat. IEA's cautions were hurled as Europe prepares for a freezing winter. The nearer we are coming to winter, the more we understand Russia's intentions," Birol had said in an interview separately with FT. I believe cuts are geared towards avoiding Europe filling storage, and increasing Russia's leverage in the winter months," he had predicted.

“We have to stop [production] immediately, from 100 to zero,” chief executive of SKW Stickstoffwerke Piesteritz, largest ammonia producer and a key European supplier of fertilisers and exhaust fluids for diesel engines had told FT. Russia recently slashed export from Nord Stream 1 pipeline linking Russia to Europe via the Baltic Sea citing construction work, but EU maintains that Putin has been weaponizing the energy and fuel.