Canada is struggling to comply with sanctions against Russian oil and gas without sanctioning its big customer – and Ottawa’s ally – Germany, a cabinet minister said.
Punishments against Russia for invading Ukraine have left a turbine needed to help the Nord Stream gas pipeline, blocked in Canada. Shortly afterwards, Russian state gas giant Gazprom PJSC cut supplies through the pipeline, the largest gas connection to the European Union, to just 40 percent of capacity.
This has complicated the rise in prices in Europe and left German and Italian leaders questioning whether Gazprom’s move is politically motivated and not caused by technical problems, as claimed. Governments across Europe have been on high alert amid growing rationing capacity, while Germany, the Netherlands and Austria have revived coal-fired power plants to help prevent potential shortages in the winter, when demand is highest.
“We want to respect the sanctions because the sanctions were imposed for a reason,” Canadian Natural Resources Secretary Jonathan Wilkinson said in an interview. “That being said, the intention of the sanctions was never to cause significant pain to Germany, which is one of our closest friends and allies. So we are very much affected by this problem. “
The turbines are made in Canada and must be sent there regularly for maintenance by the German Siemens Energy AG. One of them was repaired in Montreal, but cannot be returned now, as Canadian sanctions imposed this month ban the export of vital technical services to Russia’s fossil fuel industry.
Other turbines are still in Russia, but not all are working, according to Gazprom. The energy giant cited orders from the state safety regulator to stop using equipment due to regular maintenance.
“We are talking to Germany, trying to find a way where we can actually allow the flow of gas,” Wilkinson said. “There may be different options that we can consider.”
Russia is ready to supply the European Union, but the turbines must be returned after maintenance, the Kremlin said this week.
Nord Stream’s entry point, Russia’s Portovaya compressor station, needs six large turbines to pump gas into the Baltic Sea pipeline at full capacity. But only two of them are currently in operation, according to those familiar with the situation.
On top of that, Nord Stream is planned to be shut down for 10 days next month to pass annual work.
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