By Nicholas Earl
Europe’s largest energy network operator has slashed the value of its stake in the Nord Stream 1 gas pipeline by around €700m, blaming “heightened uncertainty” over the impact of Russia’s invasion of Ukraine.
Chief Executive Leonhard Birnbaum told reporters. “The current energy crisis finally makes clear that Europe needs to transform its energy system. To be independent of Russian gas. To ensure supply security,”
The pipeline is currently pumping gas from Russia to Germany at just a fifth of its capacity.
E.ON revealed in March that the 15.5 per cent stake, held indirectly via the firm’s pension fund, has a book value of €1.2bn – meaning today’s decision translates into a 58 per cent drop in value.
Europe and Russia are at the centre of an escalating energy stand-off that has pitted gas-dependent EU states against Russia and the Kremlin-backed gas giant Gazprom.
Russia has been putting the West under increasing pressure since the EU began targeting energy supplies.
This includes cutting gas flows through Nord Stream 1, which usually transports a third of Russia’s gas exports to Europe.
It has been running at 20 per cent capacity, which Russia blames on faulty and delayed equipment including a Siemens turbine.
The EU however, considers the move to be retaliation to Western measures, and to squeeze Europe this winter.
Multiple countries including Germany have brought in emergency energy plans in recent months, while the EU is also racing to top up supplies to 80 per cent by November.
Supplies currently average 72.4 per cent across the bloc.
With continued concerns over supply shortages this winter, the Western governments are chasing alternative suppliers and urging citizens to reduce their gas usage.
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