Putin Instructs Gazprom to Start Boosting Gas Volume in UGS Facilities in Austria, Germany

MOSCOW (Sputnik) - Russian President Vladimir Putin has instructed Gazprom to begin planned work to increase the volume of gas in European underground storage facilities after pumping gas into underground storage facilities in Russia.

"Alexey Borisovich [Miller, Gazprom CEO,] I ask you, after you finish pumping gas into underground gas storage facilities in Russia by 8 November, or on 8 November, to start smooth and planned work to increase the volume of gas in your UGS facilities in Europe, in Austria and Germany", Putin said during a video conference on the resource potential of Yamal.

"This will make it possible to reliably, stably, rhythmically fulfill your contractual obligations to supply European partners with gas in the fall-winter period. And among other things, it will certainly create a favorable situation, a more favorable situation in the energy market in Europe as a whole", the president stated.

"We will", Miller replied, adding that Gazprom plans to finish pumping gas into Russian underground storage facilities on 8 November.

The Financial Times has previously reported, citing informed sources, that German Chancellor Angela Merkel told EU leaders last week that Russia had pledged to increase gas reserves in Germany's storage facilities.

The Russian president emphasised that Gazprom made up for the shortage of US gas in Europe, the volume of supplies turned out to be even bigger than that withdrawn by the United States from the European market.

"We have repeatedly spoken about the reasons for this situation [energy crisis in Europe], and I have spoken about it. This is a decrease in our own gas production in Europe, a reduction in LNG supplies to European markets, primarily from the United States. By the way, Gazprom replenished them, even delivered more than the Americans and suppliers from the Middle East removed", Putin said.

He stressed that the situation on the energy market remains extremely unstable, primarily in Europe, and the level of gas reserves in the European storage facilities is much lower than the average volume during the past five years.

"Today we will consider a number of promising projects for the development of the Russian fuel and energy sector and its gas segment. We regularly hold such discussions, and this is very important, especially against the background of the current situation on the global energy market. First of all, I mean the situation on the European natural gas market".

In Europe, the prices "of the so-called spot, short-term contracts still exceed $1,000 per thousand cubic meters", the president noted.

The European Union has seen a spike in natural gas prices over the past few months, driven by growing energy demand in an economic recovery after months of lockdowns, coupled with a limited supply. The peak price of gas futures in Europe exceeded $ 1,900 per 1,000 cubic meters in early October. European Commission President Ursula von der Leyen has said that the bloc will explore how to establish strategic gas reserves amid the energy price crisis. The commission president also said that the union will "assess" the functionality of the electricity market and present its findings next year.