EU gas prices jump after claimed attack on last Russian pipeline

Good morning. Information to start out: Brussels is reassessing its investigations into big tech companies amid fierce lobbying over digital regulation. The overview — slightly than a suspension of the probes — is pegged to the brand new five-year European Fee, however comes as tech CEOs name for US president-elect Donald Trump to push again towards EU enforcement.

In the present day, our vitality staff reviews on market fears that the final working Russian gasoline hyperlink to Europe may very well be affected by the struggle in Ukraine, and our Rome bureau explains why Italians are turning away from e-scooters.

Final hyperlink

Ukrainian drones have allegedly focused the Russian part of the final remaining pipeline feeding the Kremlin’s gasoline into the EU, in a reported improvement that pushed up market costs by greater than 7 per cent, write Alice Hancock, Anastasia Stognei and Shotaro Tani.

Context: The TurkStream pipeline going through Turkey feeds international locations in central Europe and the Balkans, notably Hungary — the one EU nation that has maintained vital contracts for Russian gasoline following Moscow’s full-scale invasion of Ukraine. It’s the solely path to Europe left, after flows of Russian gasoline by Ukraine stopped two weeks ago.

Yesterday, Russia’s defence ministry claimed that Ukraine on Saturday tried to assault a compressor station in Russia’s south-west Krasnodar area which feeds gasoline into the pipeline, utilizing 9 drones. All drones have been intercepted and destroyed, the ministry mentioned. 

Ukraine didn’t touch upon the incident or affirm that it passed off.

The announcement pushed gasoline costs up 7.2 per cent by the top of yesterday. The surge occurred regardless of the station persevering with to produce gasoline to the TurkStream pipeline as regular, in accordance with the Russian ministry.

The Kremlin dubbed the “tried assault” as “a continuation of Kyiv’s coverage of vitality terrorism”. Talking to reporters yesterday, the Kremlin’s spokesperson Dmitry Peskov equated it to “a collection of actions involving explosions, sabotage, and the organisation of bombings”.

The disruption comes at a sensitive time for Europe’s energy markets, as Brussels makes overtures to the incoming US administration for increased purchases of American LNG, partly as a way to appease Donald Trump and keep away from his threatened commerce tariffs.

Based on Peskov, the Kremlin views the US as the primary beneficiary of the additional discount of Russian gasoline flows to Europe, alleging that it has “elevated LNG provides to Europe at inflated costs”.

Moscow curbed pipeline gas supplies to the EU after its full-scale invasion of Ukraine in 2022, inflicting a value spike and prompting the bloc to wean itself off the provision.

Hungary is the EU’s final main holdout for Russian pipeline gasoline. Hungary’s overseas minister Péter Szijjártó wrote on Fb that “any motion threatening our vitality provide should be seen as an assault on sovereignty”. 

Opposite to the bloc’s goal of importing no Russian fossil fuels by 2027, Budapest has a long-term contract relationship from 2021 for 4.5 billion cubic metres of Russian gasoline per yr, which Szijjártó introduced in October it might improve by greater than 2 bcm.

Chart du jour: Tables turned

Germany was the motor of the European financial system, with France not far behind. However in a dramatic reversal, progress is now being pushed by the once-ailing south.

Slowdown

Leases of e-scooters have plunged by 30 per cent after Italy carried out stricter guidelines to curb reckless driving, write Giuliana Ricozzi and Amy Kazmin.

Context: Italy has put the brakes on electrical scooters that are turning the streets right into a “jungle”, in accordance with the federal government. Since mid-December, riders must put on a helmet and carry third-party legal responsibility insurance coverage to hire the scooters.

There are about 55,000 scooters accessible throughout Italian cities, however autos left deserted on pavements have drawn the ire of residents, particularly in touristic locations. Different European cities reminiscent of Brussels have carried out velocity limits and devoted parking zones to rein within the trottinettes, whereas Paris has banned them altogether.

Italy’s new guidelines, a part of a brand new highway code, have been set to restrict irresponsible conduct and scale back accidents involving e-scooters, however operators warned they would drive up costs and crush demand. One month because the ban got here into drive, their worst fears appear to have materialised.

Within the final month, leases decreased by 30 per cent in contrast with the identical interval final yr, and gross sales have fallen between 30 and 50 per cent, in accordance with the Alliance for Sustainable Mobility, an affiliation representing operators together with Fowl, Dott and Lime.

‘’The affect of the brand new regulation would result in a discount within the sector’s turnover of just about 300 million euros’’ within the subsequent 5 years, the Alliance wrote in a press release.

The affiliation additionally warned of repercussions on employment, saying that the drop in e-scooters leases might trigger the lack of 1,200 jobs in Italy.

What to look at right now

1. Nato international locations bordering the Baltic Sea maintain a leaders’ summit in Helsinki.

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