Europe faces economic woes without Russian gas

Russia’s state-run energy company Gazprom said Friday that its Nord Stream 1 pipeline to Germany will remain closed indefinitely. The natural gas pipeline, which was scheduled to reopen Saturday, now needs repairs, Gazprom said. Halting gas flow through the pipeline means that Russia’s exports of natural gas to Europe are 89 percent lower than it was a year ago. French Prime Minister Elisabeth Borne recently warned that a worst-case scenario this winter for her country would be a two-hour rolling blackout from area to area. Germany may have to begin rationing natural gas.

How will this affect households? Household energy bills could spike significantly. British residents are currently in a staring contest with an impending 80 percent spike in energy bills, set by state regulator Ofgem. British media are reporting that new Prime Minister Liz Truss might plan to cap energy prices. The details of her plan are expected Thursday. Truss said she will “deal hands-on” with the energy crisis.

Dig deeper: Read the report in WORLD magazine from this year’s WJI students analyzing the effects of the war in Ukraine on every link in the United States’ food supply chain.