Russian state owned gas giant Gazprom has stated in a letter that it would not be able to fulfill its natural gas supply obligations to its European customers amid extraordinary circumstances, retroactively declaring force majeure on supplies from 14 June 2022. The declaration of the force majeure means that Gazprom should not be held responsible if it cannot supply natural gas. Companies usually declare force majeure when an unforeseen event like a fire or natural disaster prevents them from complying with contracts. Triggering the legal cause retroactively is unusual. The declaration does not necessarily mean that Gazprom will stop deliveries, rather that it should not be held responsible if it fails to meet contract terms.Natural gas supply from Russia to Germany was already reduced due to the undergoing maintenance work at the pipeline Nord Stream 1 that started in mid-July. Gazprom has been delivering less gas than ordered by customers over the past month, with the company citing problems with turbines at its main pipeline to Europe that ends in Germany. Gazprom has cited technical issues with gas turbines, one of which was stranded in Canada following repairs due to sanctions. While Canada has said it will release the part, the move may signal that there’s no chance of the turbine being returned before 21 July, when the Nord Stream pipeline is set to start operating again
Russian state owned gas giant Gazprom has stated in a letter that it would not be able to fulfill its natural gas supply obligations to its European customers amid extraordinary circumstances, retroactively declaring force majeure on supplies from 14 June 2022. The declaration of the force majeure means that Gazprom should not be held responsible if it cannot supply natural gas. Companies usually declare force majeure when an unforeseen event like a fire or natural disaster prevents them from complying with contracts. Triggering the legal cause retroactively is unusual. The declaration does not necessarily mean that Gazprom will stop deliveries, rather that it should not be held responsible if it fails to meet contract terms.Natural gas supply from Russia to Germany was already reduced due to the undergoing maintenance work at the pipeline Nord Stream 1 that started in mid-July. Gazprom has been delivering less gas than ordered by customers over the past month, with the company citing problems with turbines at its main pipeline to Europe that ends in Germany. Gazprom has cited technical issues with gas turbines, one of which was stranded in Canada following repairs due to sanctions. While Canada has said it will release the part, the move may signal that there’s no chance of the turbine being returned before 21 July, when the Nord Stream pipeline is set to start operating again
