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Europe May Shift Back to Coal as Russia Turns Down Gas Flows

Pipes at the landfall facilities of the "Nord Stream 1" gas pipeline are pictured in Lubmin, Germany, March 8, 2022. (Reuters)
Pipes at the landfall facilities of the "Nord Stream 1" gas pipeline are pictured in Lubmin, Germany, March 8, 2022. (Reuters)
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Europe May Shift Back to Coal as Russia Turns Down Gas Flows

Pipes at the landfall facilities of the "Nord Stream 1" gas pipeline are pictured in Lubmin, Germany, March 8, 2022. (Reuters)
Pipes at the landfall facilities of the "Nord Stream 1" gas pipeline are pictured in Lubmin, Germany, March 8, 2022. (Reuters)

Europe's biggest Russian gas buyers raced to find alternative fuel supplies on Monday and could burn more coal to cope with reduced gas flows from Russia that threaten an energy crisis in winter if stores are not refilled.

Germany, Italy, Austria and the Netherlands have all signaled that coal-fired power plants could help see the continent through a crisis that has sent gas prices surging and added to the challenge facing policymakers battling inflation.

The Dutch government said on Monday it would remove a cap on production at coal-fired energy plants and will activate the first phase of an energy crisis plan.

Denmark has also initiated the first step of an emergency gas plan due to the Russian supply uncertainty.

Italy moved closer to declaring a state of alert on energy after oil company Eni said it was told by Russia's Gazprom that it would receive only part of its request for gas supplies on Monday.

Germany, which has also experienced lower Russian flows, has announced its latest plan to boost gas storage levels and said it could restart coal-fired power plants that it had aimed to phase out.

"That is painful, but it is a sheer necessity in this situation to reduce gas consumption," said Economy Minister Robert Habeck, a member of the Green party that has pushed for a faster exit from coal, which produces more greenhouse gases.

"But if we don't do it, then we run the risk that the storage facilities will not be full enough at the end of the year towards the winter season. And then we are blackmailable on a political level," he said.

Russia on Monday repeated its earlier criticism that Europe had only itself to blame after the West imposed sanctions in response to Moscow's invasion of Ukraine, a gas transit route to Europe as well as a major wheat exporter.

The Dutch front-month gas contract, the European benchmark, was trading around 124 euros ($130) per megawatt hour (MWh) on Monday, down from this year's peak of 335 euros but still up more than 300% on its level a year ago.

Filling inventories slowly

Markus Krebber, CEO of Germany's largest power producer RWE , said power prices could take three to five years to fall back to lower levels.

Russian gas flows to Germany through the Nord Stream 1 pipeline, the main route supplying Europe's biggest economy, were still running at about 40% of capacity on Monday, even though they had edged up from the start of last week.

Ukraine said its pipelines could help to fill any gap in supply via Nord Stream 1. Moscow has previously said it could not pump more through the pipelines that Ukraine has not already shut off.

Eni and German utility Uniper were among European companies that said they were receiving less than contracted Russian gas volumes, although Europe's gas inventories are still filling - albeit more slowly.

They were about 54% full on Monday against a European Union target of 80% by October and 90% by November.

Germany's economy ministry said bringing back coal-fired power plants could add up to 10 gigawatts of capacity in case gas supply hit critical levels. A law related to the move goes to the upper house of parliament on July 8.

Alongside a shift back to coal, the latest German measures include an auction system to encourage industry to consume less gas, and financial help for Germany's gas market operator, via state lender KfW, to fill gas storage faster.

RWE said on Monday it could prolong the operation of three 300 megawatt (MW) brown coal power plants if needed.

Russia blames West

Austria's government agreed with utility Verbund on Sunday to convert a gas-fired power plant to coal should the country face an energy emergency. OMV said on Monday Austria was set to receive half the usual amount of gas for a second day.

The Netherlands will remove a production cap at coal-fired energy plants to preserve gas in the light of Gazprom's moves to cut supplies to Europe. Dutch energy minister Rob Jetten, who made the announcement on Monday, said the government had also activated the "early warning" phase of a three-part energy crisis plan.

Russia's state-controlled Gazprom cut capacity last week along Nord Stream 1, citing the delayed return of equipment being serviced by Germany's Siemens Energy in Canada.

"We have gas, it is ready to be delivered, but the Europeans must give back the equipment, which should be repaired under their obligations," Kremlin spokesman Dmitry Peskov said.

German and Italian officials have said Russia was using this as an excuse to reduce supplies.

Italy, whose technical committee for gas is expected to meet on Tuesday, has said it could declare a heightened state of alert on gas this week if Russia continues to curb supplies.

The move would trigger measures to reduce consumption, including rationing gas for selected industrial users, ramping up production at coal power plants and asking for more gas imports from other suppliers under existing contracts.

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NATO and Ukraine to Hold Emergency Talks after Russia’s Attack with New Hypersonic Missile

A missile shrapnel lies on the grass in front of damaged rehabilitation center for people with disabilities, following a Russian attack in the Ukrainian city of Dnipro, on November 22, 2024. (AFP)
A missile shrapnel lies on the grass in front of damaged rehabilitation center for people with disabilities, following a Russian attack in the Ukrainian city of Dnipro, on November 22, 2024. (AFP)
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NATO and Ukraine to Hold Emergency Talks after Russia’s Attack with New Hypersonic Missile

A missile shrapnel lies on the grass in front of damaged rehabilitation center for people with disabilities, following a Russian attack in the Ukrainian city of Dnipro, on November 22, 2024. (AFP)
A missile shrapnel lies on the grass in front of damaged rehabilitation center for people with disabilities, following a Russian attack in the Ukrainian city of Dnipro, on November 22, 2024. (AFP)

NATO and Ukraine will hold emergency talks Tuesday after Russia attacked a central city with an experimental, hypersonic ballistic missile that escalated the nearly 33-month-old war.

The conflict is “entering a decisive phase,” Poland's Prime Minister Donald Tusk said Friday, and “taking on very dramatic dimensions.”

Ukraine’s parliament canceled a session as security was tightened following Thursday's Russian strike on a military facility in the city of Dnipro.

In a stark warning to the West, President Vladimir Putin said in a nationally televised speech to his nation that the attack with the intermediate-range Oreshnik missile was retaliation for Kyiv’s use of US and British longer-range missiles capable of striking deeper into Russian territory.

Putin said Western air defense systems would be powerless to stop the new missile.

Kremlin spokesman Dmitry Peskov kept up Russia's bellicose tone on Friday, blaming “the reckless decisions and actions of Western countries” in supplying weapons to Ukraine to strike Russia.

"The Russian side has clearly demonstrated its capabilities, and the contours of further retaliatory actions in the event that our concerns were not taken into account have also been quite clearly outlined," he said.

Hungarian Prime Minister Viktor Orban, widely seen as having the warmest relations with the Kremlin in the European Union, echoed Moscow's talking points, suggesting the use of US-supplied weapons in Ukraine likely requires direct American involvement.

“These are rockets that are fired and then guided to a target via an electronic system, which requires the world’s most advanced technology and satellite communications capability,” Orban said on state radio. “There is a strong assumption ... that these missiles cannot be guided without the assistance of American personnel.”

Orban cautioned against underestimating Russia’s responses, emphasizing that the country’s recent modifications to its nuclear deployment doctrine should not be dismissed as a “bluff.” “It’s not a trick... there will be consequences,” he said.

Separately in Kyiv, Czech Foreign Minister Jan Lipavský called Thursday's missile strike an “escalatory step and an attempt of the Russian dictator to scare the population of Ukraine and to scare the population of Europe.”

At a news conference with Ukrainian Foreign Minister Andrii Sybiha, Lipavský also expressed his full support for delivering the necessary additional air defense systems to protect Ukrainian civilians from the “heinous attacks.”

He underlined that the Czech Republic will impose no limits on the use of its weapons and equipment given to Ukraine.

Three lawmakers from Ukraine's parliament, the Verkhovna Rada, confirmed that Friday's previously scheduled session was called off due to the ongoing threat of Russian missiles targeting government buildings in central Kyiv.

In addition, there also was a recommendation to limit the work of all commercial offices and nongovernmental organizations "in that perimeter, and local residents were warned of the increased threat,” said lawmaker Mykyta Poturaiev, who added this is not the first time such a threat has been received.

President Volodymyr Zelenskyy’s office continued to work in compliance with standard security measures, a spokesperson said.

Ukraine’s Main Intelligence Directorate said the Oreshnik missile, whose name in Russian means “hazelnut tree,” was fired from the Kapustin Yar 4th Missile Test Range in Russia’s Astrakhan region, and flew 15 minutes before striking Dnipro. The missile had six nonnuclear warheads each carrying six submunitions and reached a spoeed of Mach 11, it said.

Test launches of a similar missile were conducted in October 2023 and June 2024, the directorate said. The Pentagon confirmed the missile was a new, experimental type of intermediate-range missile based on its RS-26 Rubezh intercontinental ballistic missile.

Thursday's attack struck the Pivdenmash plant that built ICBMs when Ukraine was part of the Soviet Union. The military facility is located about 4 miles (6 1/2 kilometers) southwest of the center of Dnipro, a city of about 1 million that is Ukraine’s fourth-largest and a key hub for military supplies and humanitarian aid, and is home to one of the country’s largest hospitals for treating wounded soldiers from the front before their transfer to Kyiv or abroad.

The stricken area was cordoned off and out of public view. With no fatalities reported from the attack, Dnipro residents resorted to dark humor on social media, mostly focused on the missile’s name, Oreshnik.

Elsewhere in Ukraine, Russia struck a residential district of Sumy overnight with Iranian-designed Shahed drones, killing two people and injuring 13, the regional administration said..

Ukraine’s Suspilne media, quoting Sumy regional head Volodymyr Artiukh, said the drones were stuffed with shrapnel elements. “These weapons are used to destroy people, not to destroy objects,” said Artiukh, according to Suspilne.