The head of the International Energy Agency said Russia has the capacity to send substantially more gas to Europe and alleviate the energy crisis gripping the continent, in an intervention likely to bolster claims that the country is withholding crucial supplies.
Fatih Birol, the executive director of the IEA, told the Financial Times that the agency’s own analysis suggested Russia could raise exports by roughly 15 per cent of peak winter supply to the continent.
Speaking the day after President Vladimir Putin hinted at a boost to shipments, Birol urged Russia to prove it is a “reliable supplier” by helping alleviate a supply crunch that has rocked energy prices and threatened the global recovery from pandemic lockdowns.
“If Russia does what it indicated yesterday and increases the volumes to Europe, this would have a calming effect on the market,” he said. “I don’t say they will do it but if they wish so, they have the capacity to do it.”
The IEA, which is primarily funded by OECD countries to advise on energy policy and security, first said last month that it believed Russia could boost supplies to Europe but without specifying by how much.
Gas prices have been climbing for months, and shot higher on Wednesday on the growing prospect of supply shortages over the winter. But a 40 per cent gain in UK prices quickly snapped back to a 9 per cent drop on the day after Putin hinted at larger supplies.
Gazprom said Putin’s comments had a calming effect on Russian producers and European consumers alike. “We all let out a sigh of relief in agreement and said
‘Thank God!”‘ Elena Burmistrova, head of Gazprom’s export arm, told a conference
markets threatened the stability of the regional economy and proved that the long-term contracts Gazprom was pushing were a safer option.