Canada has completed repairs and sent back a Russian turbine crucial for the shipment of natural gas to Europe despite objections from Ukraine.
According to Reuters, which cited a report by the Kommersant newspaper, Canada has agreed to ship back a turbine that was sent into service by German-based Siemens Energy. The turbine, which is crucial in the shipment of natural gas from Russia into Germany, was originally sent to Canada as part of Gazprom’s maintenance on the Nord Stream 1 pipeline, which was scheduled long before the conflict in Ukraine.
However, since the global deterioration of relations with Russia, the turbine has become the topic of heated debates, as Ukraine’s Zelensky argued that by Canada returning the component it is violating its sanctions regime imposed on Russia’s energy sector. But, pressure from Germany— which heavily relies on Russian gas— to return the turbine prompted the Canadian government to issue a time-limited revocable permit to Siemens Canada necessary for the part’s shipment back to Europe.
Absent of the turbine, Gazprom already started the 10-day maintenance on the pipeline on Monday, after slashing gas shipments into Europe by 60% over the past several weeks. The turbine was loaded onto a cargo jet on Monday, and once it arrives in Germany, it will be transported via ferry and then by land before arriving at the Portovaya station on July 24.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.