Nord Update
Last time we checked on the Nord Pipeline, the deadline was approaching for Russia to resume flowing gas to Europe. After heavy amounts of tension, Russia finally broke, and gas began flowing through the pipeline although it was at reduced volume. This helped calm down Europeans in the short term because it looked like a total shutdown was imminent, and European countries were starting to warn the people about rationing energy.
This has done nothing to relieve governments, however, as fears of energy dependency being used as a weapon were confirmed. The Western world has said that Russia’s supply cut last week was simply just to try and get rid of sanctions, which proves that. The reduced flows still pose a threat that might lead to rationing, and the link between the two factions is still too weak to rely on. Energy consumption always rises in the winter as things get colder, but supply is getting crushed by record heat waves across the continent that have killed more than a thousand people. President Vladimir Putin might decrease flows to 20 percent capacity, citing Western sanctions as a reason, and Europe is still swiveling to alternative energy sources just in case.
All of this is creating what looks to be an economic war between the EU and Russia, with the sanctions starting to bite them back. However, European countries have stressed that they would keep the pressure on Russia and their support of Ukraine. All of these economic factors signal that a European recession might be inevitable, and lawmakers are hoping that they can do their best to prevent or at least mitigate the possible effects of a poor economy.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
