Re: Russia blames 'short-sighted energy policy' of Europe for current Crisis--Germany shut down half of its remaining nuclear power plants this month
Russia is honoring all long term contract commitments. It is simply not making gas available for the noncontract spot market. Europe environmental fanatics do not want to sign long term contracts since they want to force renewables only. Russia does not want to invest long term money on gas fields/delivery system if not have guarantee of demand--a reasonable business request. Not significantly different from U.S. pipeline companies not building without commitments from users guaranteeing minimal revenues. Was a real mistake for Gazprom to build NordStream II without commitments as it spent billions and Germany is not under any financial pressure to actually use the pipeline.
This whole mess is quite disruptive to world markets. LNG tankers diverted to Europe are failing to supply regular Asian customers at regular terms. This makes them unreliable suppliers hurting future business. Not worth building LNG tankers for temporary demand. LNG several times cost of pipeline gas for Europe. France forcing electric utility to eat Billions of losses by not more than tripling electric rates to compensate for high LNG delivery prices. Major economic hit to Europe which can not be swept under the rug in long term.
On the flip side, for the greenies, the obscenely high costs are making renewables more cost competitive. IF Europe does not import Russian gas, it will need much higher energy prices and rapid increase in wind/solar production(grid stability will also be tough without enough rapid start stop gas generators).