even tougher winter next year as natural gas stocks are used up and as new supplies to replace Russian gas, including increased shipments from the United States or Qatar, are slow to come online, the International Energy Agency said in its annual World Energy Outlook, released last week.

Europe’s activity appears to be accelerating a global transition toward cleaner technologies, the I.E.A. added, as countries respond to Russia’s invasion of Ukraine by embracing hydrogen fuels, electric vehicles, heat pumps and other green energies.

But in the short term, countries will be burning more fossil fuels in response to the natural gas shortages.

gas fields in Groningen, which had been slated to be sealed because of earthquakes triggered by the extraction of the fuel.

Eleven countries, including Germany, Finland and Estonia, are now building or expanding a total of 18 offshore terminals to process liquid gas shipped in from other countries. Other projects in Latvia and Lithuania are under consideration.

Nuclear power is winning new support in countries that had previously decided to abandon it, including Germany and Belgium. Finland is planning to extend the lifetime of one reactor, while Poland and Romania plan to build new nuclear power plants.

European Commission blueprint, are voluntary and rely on buy-ins from individuals and businesses whose utility bills may be subsidized by their governments.

Energy use dropped in September in several countries, although it is hard to know for sure if the cause was balmy weather, high prices or voluntary conservation efforts inspired by a sense of civic duty. But there are signs that businesses, organizations and the public are responding. In Sweden, for example, the Lund diocese said it planned to partially or fully close 150 out of 540 churches this winter to conserve energy.

Germany and France have issued sweeping guidance, which includes lowering heating in all homes, businesses and public buildings, using appliances at off-peak hours and unplugging electronic devices when not in use.

Denmark wants households to shun dryers and use clotheslines. Slovakia is urging citizens to use microwaves instead of stoves and brush their teeth with a single glass of water.

website. “Short showers,” wrote one homeowner; another announced: “18 solar panels coming to the roof in October.”

“In the coming winter, efforts to save electricity and schedule the consumption of electricity may be the key to avoiding electricity shortages,” Fingrad, the main grid operator, said.

Businesses are being asked to do even more, and most governments have set targets for retailers, manufacturers and offices to find ways to ratchet down their energy use by at least 10 percent in the coming months.

Governments, themselves huge users of energy, are reducing heating, curbing streetlight use and closing municipal swimming pools. In France, where the state operates a third of all buildings, the government plans to cut energy use by two terawatt-hours, the amount used by a midsize city.

Whether the campaigns succeed is far from clear, said Daniel Gros, director of the Centre for European Policy Studies, a European think tank. Because the recommendations are voluntary, there may be little incentive for people to follow suit — especially if governments are subsidizing energy bills.

In countries like Germany, where the government aims to spend up to €200 billion to help households and businesses offset rising energy prices starting next year, skyrocketing gas prices are hitting consumers now. “That is useful in getting them to lower their energy use,” he said. But when countries fund a large part of the bill, “there is zero incentive to save on energy,” he said.

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World is in its ‘first truly global energy crisis’ – IEA’s Birol

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SINGAPORE, Oct 25 (Reuters) – Tightening markets for liquefied natural gas (LNG) worldwide and major oil producers cutting supply have put the world in the middle of “the first truly global energy crisis”, the head of the International Energy Agency (IEA) said on Tuesday.

Rising imports of LNG to Europe amid the Ukraine crisis and a potential rebound in Chinese appetite for the fuel will tighten the market as only 20 billion cubic meters of new LNG capacity will come to market next year, IEA Executive Director Fatih Birol said during the Singapore International Energy Week.

At the same time the recent decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to cut 2 million barrels per day (bpd) of output is a “risky” decision as the IEA sees global oil demand growth of close to 2 million bpd this year, Birol said.

“(It is) especially risky as several economies around the world are on the brink of a recession, if that we are talking about the global recession…I found this decision really unfortunate,” he said.

Soaring global prices across a number of energy sources, including oil, natural gas and coal, are hammering consumers at the same time they are already dealing with rising food and services inflation. The high prices and possibility of rationing are potentially hazardous to European consumers as they prepare to enter the Northern Hemisphere winter.

Europe may make it through this winter, though somewhat battered, if the weather remains mild, Birol said.

“Unless we will have an extremely cold and long winter, unless there will be any surprises in terms of what we have seen, for example Nordstream pipeline explosion, Europe should go through this winter with some economic and social bruises,” he added.

For oil, consumption is expected to grow by 1.7 million bpd in 2023 so the world will still need Russian oil to meet demand, Birol said.

G7 nations have proposed a mechanism that would allow emerging nations to buy Russian oil but at lower prices to cap Moscow’s revenues in the wake of the Ukraine war.

Birol said the scheme still has many details to iron out and will require the buy-in of major oil importing nations.

A U.S. Treasury official told Reuters last week that it is not unreasonable to believe that up to 80% to 90% of Russian oil will continue to flow outside the price cap mechanism if Moscow seeks to flout it.

“I think this is good because the world still needs Russian oil to flow into the market for now. An 80%-90% is good and encouraging level in order to meet the demand,” Birol said.

While there is still a huge volume of strategic oil reserves that can be tapped during a supply disruption, another release is not currently on the agenda, he added.

ENERGY SECURITY DRIVES RENEWABLES GROWTH

The energy crisis could be a turning point for accelerating clean sources and for forming a sustainable and secured energy system, Birol said.

“Energy security is the number one driver (of the energy transition),” said Birol, as countries see energy technologies and renewables as a solution.

The IEA has revised up the forecast of renewable power capacity growth in 2022 to a 20% year-on-year increase from 8% previously, with close to 400 gigawatts of renewable capacity being added this year.

Many countries in Europe and elsewhere are accelerating the installation of renewable capacity by cutting the permitting and licensing processes to replace the Russian gas, Birol said.

Reporting by Florence Tan, Muyu Xu and Emily Chow; Editing by Jacqueline Wong and Christian Schmollinger

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U.K. Live Updates: Liz Truss Resigns as Prime Minister

LONDON — For Liz Truss, the end came on Thursday in a midday meeting with grandees of the Conservative Party. But Ms. Truss’s fate as prime minister was all but sealed three weeks earlier when currency and bond traders reacted to her new fiscal program by torpedoing the pound and other British financial assets.

The market’s swift, withering verdict on Ms. Truss’s tax-cutting agenda shattered her credibility, degraded Britain’s reputation with investors, drove up home mortgage rates, pushed the pound down to near parity with the American dollar, and forced the Bank of England to intervene to prop up British bonds.

That repudiation, measured in the second-by-second fluctuations of bond yields and exchange rates, mattered more than the noisy departures of Ms. Truss’s cabinet ministers or the hothouse anxieties of Conservative lawmakers that ultimately made her position untenable.

For that reason, world leaders, buffeted by economic challenges, are watching the turmoil in Britain with anything but relish, concerned about the stability of Britain itself. Interest rates, energy costs and inflation are rising around the world. Labor unrest is proliferating across borders. Non-British pension funds potentially face the same financial stresses that afflicted those in Britain. The last thing leaders want is for Ms. Truss’s woes to be a harbinger for other countries.

President Emmanuel Macron of France, who recently mended fences with Ms. Truss after she refused last summer to characterize him as a friend or foe, said: “I wish in any case that Great Britain will find stability again and moves on, as soon as possible. It’s good for us, and it’s good for our Europe.”

Credit…Henry Nicholls/Reuters

Ms. Truss, economists said, is correct to argue that markets are driven by global trends broader than her tax cuts. Central banks worldwide are raising rates to battle inflation, which has been fueled by a surge in demand as the coronavirus pandemic ebbed and a spike in gas prices driven by Russia’s war in Ukraine.

“The problems are by no means all Truss’s doing but she should have known that getting blamed for everything comes with the territory,” said Kenneth Rogoff, a professor of economics at Harvard and a scholar of financial upheavals.

“What is really worrisome now,” he said, is that the situation in Britain “might be the canary in the coal mine as global interest rates keep soaring, especially as they do not seem likely to come down anytime soon.”

Ms. Truss long cultivated a reputation as a disrupter and a free-market evangelist in the tradition of Margaret Thatcher and Ronald Reagan. Her tax cut proposals made her an outlier among leaders of big economies fighting inflation. But she made no apologies for offending either economic orthodoxy or the expectations of financial markets in pursuit of her vision of a “low-tax, high growth” Britain.

“Not everyone will be in favor of change,” a defiant Ms. Truss said a week ago at the annual meeting of the Conservative Party, even though one of her planned tax cuts, for high-earning people, had already been reversed. “But everyone will benefit from the result: a growing economy and a better future.”

The prime minister’s fatal miscalculation, experts said, was to believe that Britain could defy the gravity of the markets by passing sweeping tax cuts, without corresponding spending cuts, at a time when inflation is running in double digits and interest rates were rising.

“It was the combination of the wrong fiscal policy at the wrong time — borrowing when rates were rising rather than, as in 2010s, when they were low,” said Jonathan Portes, a professor of economics and public policy at Kings College London.

He cited what he called Ms. Truss’s “institutional vandalism,’’ in particular the way she and her ousted chancellor of the Exchequer, Kwasi Kwarteng, broke with custom by announcing sweeping tax cuts without subjecting them to the scrutiny of the government’s fiscal watchdog, the Office of Budget Responsibility.

In that sense, he said, Ms. Truss was following in the footsteps of her predecessor, Boris Johnson, who resigned as prime minister barely three months earlier after a series of scandals prompted a wholesale walkout of his ministers.

Credit…Oli Scarff/Agence France-Presse — Getty Images

Mr. Kwarteng’s budget maneuvering led many in the markets to suspect the government was engaged in a kind of fiscal sleight of hand, which would inevitably require massive borrowing to cover a hole in the budget estimated at 72 billion pounds ($81.5 billion).

Mr. Kwarteng, who studied the history of financial crises as a doctoral student at Cambridge University, brushed off the blowback in financial markets as a temporary phenomenon. Like Ms. Truss, he is a believer in disruptive change. Together, they were among the authors of “Britannia Unchained,” a manifesto for a Thatcher-style, free-market revolution in post-Brexit Britain. Among other things, the authors described Britons as “among the worst idlers in the world.”

When, or even whether, Britain can fully recover from this period of political and economic turbulence is not yet clear. On Thursday, as news of Ms. Truss’s resignation broke, the pound rose against the dollar and yields on British government bonds fell.

Virtually all the government’s planned tax cuts have been reversed, and the next prime minister, regardless of his or her politics, will have little choice but to pursue a policy of spending cuts and strict fiscal discipline. Some fear a return to the bleak austerity of Prime Minister David Cameron in the years after the 2008 financial crisis.

“Rishi or another can steady the ship and calm the markets,” Professor Portes said, referring to Rishi Sunak, a former chancellor who ran unsuccessfully against Ms. Truss and may seek to succeed her. “But it’s hard to see how, given the state of the Conservatives, any Tory prime minister can repair the longer-term damage.”

Much of that damage is to Britain’s once-sterling reputation in the markets. Economists have begun mentioning Britain in the same breath as fiscally wayward countries like Italy and Greece. Lawrence H. Summers, the former U.S. Treasury secretary, told Bloomberg News, “It makes me very sorry to say, but I think the U.K. is behaving a bit like an emerging market turning itself into a submerging market.”

That is a humbling comedown for a country that in 2009 announced a $1.1 trillion emergency fund to bail out the global economy.

“If you’re an American fund manager, you’re not going to put Britain in the super-safe category you might have earlier,” said Jonathan Powell, who served as chief of staff to Prime Minister Tony Blair. “It’s not about Britain’s standing in the world, but what category we’ve put ourselves in.”

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Putin: Germany unlikely to accept gas via remaining Nord Stream 2 pipeline

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Oct 14 (Reuters) – Russian President Vladimir Putin said on Friday Germany was unlikely to accept Russian gas from the one remaining undamaged line of the Nord Stream 2 pipeline, two days after Berlin rejected his initial offer.

“A decision has not been made and it’s unlikely to be made, but that’s no longer our business, it’s the business of our partners,” he said.

The Nord Stream pipelines, intended to carry gas from Russia to Germany under the Baltic Sea, suffered unexplained ruptures in three of their four lines, incidents that European countries have called sabotage.

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Putin said on Wednesday that Russian gas could still be supplied to Europe through the one remaining intact line of the uncommissioned Nord Stream 2 pipeline, but a German government spokesman ruled this out.

Germany froze the approval process for the recently laid Nord Stream 2 as Russia was preparing to invade Ukraine, and it was never opened.

“They have to decide what is more important for them: fulfilling some kind of alliance commitment, as they see it, or safeguarding their national interests,” Putin said.

The impact of efforts to use less Russian energy, plus steep cuts in supplies from Russia, have been felt across the 27-nation European Union, with gas prices almost 90% higher than a year ago and fears of rationing and power cuts over the coming winter.

EU energy ministers on Wednesday agreed on the outlines of a package of proposals to tackle the crisis that will be put to the European Commission next week.

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EDF says strike hits a third of French nuclear plants, delaying maintenance work

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PARIS, Oct 15 (Reuters) – Strike action over wage demands was hitting a third of EDF’s 18 French nuclear plants as of Friday night, a spokesperson for the utility said, further delaying the maintenance of its reactors.

“Six sites (were) affected by strikes as of last night,” the spokesperson said on Saturday.

This led to the postponement of the restart date of five reactors currently under maintenance by “one to several days”, the spokesperson for EDF (EDF.PA) added.

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Nuclear power represented more than two thirds of France’s total electricity production in 2021, according to data from grid operator RTE.

The country will be short of between 5 and 15 gigawatts (GW) of power at peak demand this winter depending on the temperature and will need to mainly rely on imports, according to forecast models developed by EDF’s works council CSE.

France will have to buy electricity on the market this winter or produce it from gas, and there is no guarantee that neighbouring countries will be in a position to sell their electricity, CSE representative Philippe Page le Merour has said, given the energy crisis in Europe.

A representative for France’s FNME trade union said on Friday that maintenance work at nine nuclear reactors split between five sites had been delayed due to a strike over wages.

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Reporting by Mathieu Rosemain; Editing by Kirsten Donovan

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Toll of Russian Strikes Mounts, Adding Urgency to Ukraine’s Pleas for Weapons

Credit…Jean-Francois Badias/Associated Press

PARIS — France began pumping natural gas directly to Germany for the first time on Thursday, part of a landmark agreement struck by both governments to help each other confront Europe’s energy crisis as Russia cuts off gas supplies to Europe.

Volumes of gas capable of producing around 31 gigawatt-hours per day of electricity began flowing early on Thursday into Germany, the French network operator GRTgaz said. The connection has a maximum capacity of 100 gigawatt-hours per day, equal to the power output of four nuclear reactors, or about 10 percent of the amount of liquefied natural gas that France imports each day, the company said.

GRTgaz said that months ago it had begun modifying its pipeline networks to be able to send gas to Germany. For years, the German economy has relied on Russian gas exports, but this year Moscow has slashed them in response to Western sanctions for its invasion of Ukraine.

France gets its gas from the Netherlands, Norway and Russia, according to the International Energy Agency, although supplies from Russia were cut off in September. It also receives deliveries of liquefied natural gas from several L.N.G. terminals.

To face the energy crunch, France has been storing gas and getting more of it from its European partners and Qatar. Recently, President Emmanuel Macron has burnished relations with Algeria, a former French colony, which has agreed to sharply increase gas exports to France.

In exchange for the gas from France, Germany has pledged to export more electricity to that country as it grapples with an unprecedented crisis in its nuclear power industry that has reduced power production.

“Germany needs our gas, and we need the electricity produced in the rest of Europe, and in particular in Germany,” President Emmanuel Macron said last month after speaking with the German chancellor, Olaf Scholz, about the agreement. “We will contribute to European solidarity in gas and benefit from European solidarity in electricity.”

“Merci beaucoup,” Klaus Müller, the head of Germany’s federal network agency, wrote in a Twitter message to GRTGaz on Thursday. “The gas deliveries from France, through Saarland, help Germany’s energy security.”

European countries have pledged to work together to get through winter as Russia’s aggression in Ukraine raises the prospect of a prolonged energy crisis. On Thursday, Spain proposed increasing its gas deliveries to France by 18 percent in the coming months, Spain’s ecological transition minister, Teresa Ribera, said.

As Europe’s largest economy and the one most dependent on Russian gas, Germany has been among the countries worst affected by the energy crisis rippling across Europe, where natural gas costs about 10 times what it did a year ago. Both Berlin and Paris have imposed a broad range of conservation measures, including lowering thermostats and hot water heaters, encouraging the use of public transport and requiring public buildings to turn off lights early.

The energy crunch has forced European governments to fall back on less-desirable power sources that they had been trying to phase out in a push to go green. Germany, for instance, has decided to keep coal-fired power plants online and restart several others that had been mothballed.

In addition, Germany decided to keep two of its three remaining nuclear power plants operational as an emergency reserve for its electricity supply, breaking a political taboo and delaying its plans to become the first industrial power to go nuclear-free for its energy.

And in France, the government is facing an energy crisis of its own after half its fleet of nuclear power plants — the largest in Europe — was taken offline earlier this year for inspections and repairs. The electricity shortage has driven prices to record levels, forcing factories to cut production and put tens of thousands of employees on furlough.

Bruno Le Maire, France’s economy minister, warned Thursday that high energy prices continued to pose a “major risk” to French industry and would lead to a 10 percent decline in industrial production this winter.

Berlin this month announced a 200 billion euro (about $196 billion) aid plan for German households, businesses and industries. It includes policies to curb natural gas and electricity prices domestically. And France has already spent around €100 billion since last winter doing the same.

But with Mr. Scholz facing pushback over his government’s decision to keep nuclear plants running, Germany’s ability to uphold its end of the energy-swap deal with France may wind up depending on the French themselves: GRTgaz said that the exported French gas would allow Germany to produce more electricity, which in turn would be sent back to the French grid during peak hours.

“If we did not have European solidarity,” Mr. Macron said in a televised interview on Wednesday, “we would have serious problems.”

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Live Updates: Putin’s ‘Mass Strike’ on Ukraine Draws Furious Condemnation

For months, Russia’s state media insisted that the country was only hitting military targets in Ukraine, leaving out the suffering that the invasion has brought to millions of civilians.

On Monday, the mask came off. Russian state television showed gas lines in Ukraine, empty store shelves and a long-range forecast promising months of freezing temperatures there. And rather than focus on the civilian destruction in Russian-held areas as they usually do, news broadcasts in Russia showed columns of smoke and carnage in central Kyiv.

“There’s no hot water, part of the city is without power,” one anchor announced, describing the scene in the western Ukrainian city of Lviv.

The sharp shift was a sign that domestic pressure over Russia’s flailing war effort had escalated to the point where President Vladimir V. Putin felt a decisive show of force was necessary.

His military has come under increasingly withering criticism from the war’s supporters for not being aggressive enough in its assault on Ukraine, a chorus that reached a fever pitch after Saturday’s attack on the 12-mile bridge to the annexed Ukrainian peninsula of Crimea — a symbol of Mr. Putin’s rule.

With Monday’s brutal escalation of the war effort, Mr. Putin in part appears to be responding to those critics, momentarily quieting the clamors of hard liners furious with the Russian military’s humiliating setbacks on the battlefield.

“This is important from the domestic political perspective, first and foremost,” Abbas Gallyamov, a Russian political analyst and former Putin speechwriter, said of Monday’s strikes. “It was important to demonstrate to the ruling class that Putin is still capable, that the Army is still good for something.”

But with his escalation, Mr. Putin is also betting that Russian elites — and the public at large — do indeed see it as a sign of strength, rather than a desperate effort to inflict more pain in a war that Russia appears to be losing.

“The response was supposed to show power, but in fact it showed powerlessness,” Mr. Gallyamov said. “There’s nothing else the army can do.”

After Monday’s strikes, some of the invasion’s harshest critics among the Russian hawks declared that the military was finally doing its job. The strongman leader of the Chechnya, Ramzan Kadyrov — who recently excoriated the army’s “incompetent” leadership — said in a Telegram post that he was now “100 percent happy” with the war effort.

Credit…Finbarr O’Reilly for The New York Times

“Run, Zelensky, run,” he wrote, referring to Ukraine’s president.

Other cheerleaders of the war triumphantly recalled Mr. Putin’s declaration in July that Russia had not “started anything yet in earnest” in Ukraine.

“Now, it seems, it’s started,” one state television talk show host, Olga Skabeyeva, said.

Mr. Putin described Monday’s strikes as a response to Ukrainian “terrorist acts,” casting them as a one-time assault to deter future Ukrainian attacks on Russian territory. In his home city of St. Petersburg, where he had traveled on Friday for his 70th birthday, Mr. Putin spoke on national television for just over three minutes in what the Kremlin characterized as the start of a meeting with his Security Council.

He made a point of saying the strikes came at the military’s initiative, an apparent effort to head off assertions that he was plotting the war effort in isolation.

“This morning, at the suggestion of the Ministry of Defense and according to the plan of the Russian General Staff, a massive strike with air, sea and land-based high-precision long-range weapons was launched against Ukrainian energy, military command and communications facilities,” Mr. Putin said. “If attempts to carry out terrorist attacks on our territory continue, the measures taken by Russia will be tough and in their scale will correspond to the level of threats posed to the Russian Federation. No one should have any doubt about it.”

In his speech, Mr. Putin made one notable omission: he did not mention the West as the ultimate culprit behind Saturday’s Crimean bridge explosion or other suspected Ukrainian attacks. That was a departure from the typical Kremlin rhetoric that portrays Washington and London as the puppeteers behind Ukraine’s resistance.

The shift was a possible signal that the Russian leader was interested in controlling the escalation of the war, and that he was not on the verge of provoking a direct conflict with NATO.

But some signs pointed to Mr. Putin being prepared for a wider escalation of the war. On Saturday, he appointed a general known for his ruthlessness, Sergei Surovikin, to lead the war effort in Ukraine. And Mr. Putin’s closest international ally, President Aleksandr G. Lukashenko of Belarus, declared on Monday that thousands of Russian soldiers would soon arrive in the country to form a joint military group with Belarusian forces — creating the specter of a new threat to Ukraine’s north.

Greg Yudin, a professor of political philosophy at the Moscow School of Social and Economic Sciences, said Mr. Putin had bent to pressure from right-wing hawks who are calling for even more escalation. He said he expected that Mr. Putin would “sooner or later” heighten the threats of potentially using tactical nuclear weapons.

In central Moscow, many people said they were unaware of what had happened in Ukraine. People soaked up the sun in the chic neighborhood of central Tsvetno, or rushed to work or appointments.

Some younger people, more attuned to social media, said they were aware of the strikes on Ukraine but felt powerless to assign blame. “It is bad when people are killed for any reason,” said Sasha, 19, a university student. Still, she went on, “In any fight, both sides are responsible.”

In Russia, the penalties for criticizing the war — or even using the term war — come with hefty fines and even jail time, so many Russians are cautious about making comments that might have a negative connotation about the war.

Valerie Hopkins reported from Moscow. Alina Lobzina also contributed reporting.

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As E.U. Seeks to Curb Russia’s Revenues, Oil Supply Cut Poses Obstacle

Credit…Getty Images

What impact a European price cap on Russian oil may have remains a matter of conjecture because many of the details, including the price, remain to be determined. But some analysts say it could have unintended consequences.

Henning Gloystein, a director at Eurasia Group, a political risk firm, said that the cap might wind up just continuing the status quo, since Russia is already selling oil to China and India at a 30 percent discount. The end result of the cap may be to simply replicate that discount on Russian oil exports to those nations, which have resisted joining the West in imposing sanctions. “It is formalizing something that is already there,” he said.

Others say that the cap, which is expected to gain final approval on Thursday, will add more bureaucratic procedures to a long series of sanctions already in place against Russia. Those extra steps may impede the flow of oil around the world and raise prices, causing the sort of major disruption that Washington appears to be trying to avoid.

“It adds new complexity to the task of redirecting Russian oil to new destinations,” Richard Bronze, head of geopolitics for Energy Aspects, a political risk firm, said.

That the specifics of the cap, including the price, have not been spelled out will likely make life difficult for people buying and selling oil, who need to make decisions several weeks in advance, Mr. Bronze said.

“They would not know what they would need to do or what price they would need to agree with a Russian seller if they wanted to abide by the price cap,” he said. “This is another example of how policymakers are not in tune with what the industry and the market are saying to make this policy work.”

China has leaned in favor of Russia during the Ukraine war, repeating Russian disinformation, but so far, Western government experts say, China has refrained from providing Moscow military assistance or helping Russia to evade sanctions.

China’s foreign ministry criticized the concept of price caps soon after the idea was first unveiled by Western leaders a month ago, warning that oil was too important to the global economy to be subject to the planned price controls. “Oil is a global commodity — ensuring global energy supply security is vitally important,” Mao Ning, a foreign ministry spokeswoman, said on Sept. 5.

Four days later, Ben Harris, the assistant secretary of the U.S. Treasury for economic policy, said at forum that price caps by other countries would allow China to demand deep discounts on the oil it purchases from Russia as well. The United States would be satisfied with that indirect effect on Russia’s prices, he said.

China’s foreign ministry is closed this week for a national holiday, and issued no immediate response to the European action on Wednesday.

Fatih Birol, the executive director of the International Energy Agency, said in an email on Wednesday that while Russia had profited in recent months from high world energy prices, the country would pay a long-term price.

“It’s clear at this stage that Russia isn’t winning the energy battle,” Mr. Birol said. “Its short-term gain in income from the crisis is outweighed by the long-term loss of both trust and revenues that it has brought about by ruining its relationship with the European Union, its biggest customer.”

Before the invasion of Ukraine, Mr. Birol pointed out, about 75 percent of Russia’s natural gas exports and 55 percent of its oil exports went to Europe. “Finding alternative markets on this scale cannot be done quickly or easily, especially in the case of natural gas,” he said.

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Nord Stream operators: Authorities won’t allow us to inspect damaged pipelines

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  • This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine

MOSCOW, Oct 4 (Reuters) – The operators of two Baltic Sea gas pipelines that linked Russia and Germany until they both sprang major leaks last week said they were unable to inspect the damaged sections because of restrictions imposed by Danish and Swedish authorities.

Europe is investigating what caused three pipelines in the Nord Stream network to burst in an act of suspected sabotage near Swedish and Danish waters that Moscow quickly sought to pin on the West, suggesting the United States stood to gain.

Nord Stream 2 AG, Switzerland-based operator of that gas pipeline, said on Tuesday it will examine the condition of the leaking pipelines once a police investigation of the “crime scene” is completed and a cordon is lifted.

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Later on Tuesday, Nord Stream AG, operator of the older Nord Stream 1 pipeline, said they had been told by Danish authorities that receiving the necessary permits to carry out an inspection could take over 20 working days.

“According to the Swedish authorities, a ban on shipping, anchoring, diving, using of underwater vehicles, geophysical mapping, etc. has been introduced to conduct a state investigation around the damage sites in the Baltic Sea,” Nord Stream said in a press release.

Pressure in the pipeline had stabilised as of Monday, Nord Stream added.

Switzerland-based Nord Stream 2 said in emailed comments it was “cooperating with all relevant authorities”.

“Copenhagen police are handling the investigation of the crime scene at the Nord Stream 2 leak in the Danish EEZ (exclusive economic zone),” it said. “The Swedish coast guard has cordoned off the area around the leak in the Swedish EEZ.”

Kremlin-controlled Gazprom (GAZP.MM) has said flows could resume at the last remaining intact pipeline in the Nord Stream 2 network, a suggestion likely to be rebuffed given Europe blocked Nord Stream 2 days before Moscow sent its troops into Ukraine on Feb. 24.

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Reporting by Reuters; Editing by Andrew Heavens, Jan Harvey and Cynthia Osterman

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U.S. gas at $4-$5 is a thing of the past, says Tellurian chairman

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LONDON, Oct 4 (Reuters) – The chairman of liquefied natural gas (LNG) company Tellurian Inc (TELL.A), Charif Souki, on Tuesday said that cheap U.S. gas is a thing of the past and the only solution for Europe’s energy crisis is to invest in U.S. gas infrastructure.

“Getting (U.S.) gas in the water for $4-$5 is something of the past; if you really want to justify an investment … you have to think of $10-$12,” Souki told the Energy Intelligence Forum in London.

Souki said investment in U.S. LNG projects could be Europe’s one option to solve the energy crisis sparked by Russia’s invasion of Ukraine, with Russian gas supplies to Europe having plunged since the start of the war.

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“Europe will be spending $500 billion to $600 billion in subsidies for their consumers. For a fraction of that price, you could secure long term gas reserves from the Unites States,” he said.

“There are $100 billion of liquefaction projects in the United states that are permitted but have not been able to obtain financing …You have to make investments if you want to control the resource.”

The United States has been the biggest supplier of the seaborne fuel to Europe this year, with U.S. cargoes representing more than 70% of Europe’s Jan-Sept LNG imports.

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Reporting by Marwa Rashad
Editing by David Goodman

Our Standards: The Thomson Reuters Trust Principles.

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