- Russia is aiming to squeeze Europe further by keeping gas flows minimal, Bloomberg reported Tuesday.
- In particular, the Kremlin is aiming to heighten Europe's energy crisis to force policymakers to reconsider some of their sanctions.
- Gazprom has come up with ways to minimize financial damage as surging gas prices prop up revenue.
Russia will continue to put pressure on Europe by keeping gas flows to minimal levels, according to a Tuesday Bloomberg report.
In particular, the Kremlin is aiming to heighten Europe's energy crisis to force policymakers to reconsider some of the sanctions they imposed after Russia invaded Ukraine, sources familiar with the matter told Bloomberg.
Russia's state-run energy giant Gazprom, which is slashing gas flows via the Nord Stream 1 pipeline to 20%, has taken a close look at the impact of a gas shutoff lasting into 2023, the report says, and it has come up with ways to minimize financial damage as surging gas prices prop up revenue.
The sources told Bloomberg they expect Moscow and Gazprom to continue to find reasons to limit gas flows. This comes at a key time frame when Europe should be building its energy supplies ahead of the winter months.
European leaders are already bracing for the worst and agreed Tuesday to cut gas consumption by 15%.
Europe is Moscow's biggest customer for gas, as the continent imports about one-third of its gas supplies from Russia. In recent months, however, the US has stepped up to become the world's top liquefied natural gas exporter as it sends supplies to Europe amid the crisis.
But even while leveraging energy supplies as a political tool, Russia is facing "economic oblivion" as Western sanctions sink its GDP, according to a new research paper.
"From our analysis, it becomes clear: business retreats and sanctions are catastrophically crippling the Russian economy," the authors wrote.