GERMANY IS KAPUT: Gazprom Declares Force Majeure, Will Halt Gas Flows To Germany INDEFINITELY

Reuters article: https://archive.ph/KOP9u
LONDON, July 18 (Reuters) - Russia's Gazprom has told customers in Europe it cannot guarantee gas supplies because of 'extraordinary' circumstances, according to a letter seen by Reuters, upping the ante in an economic tit-for-tat with the West over Moscow's invasion of Ukraine.

Dated July 14, the letter from the Russian state gas monopoly, said it was declaring force majeure on supplies, starting from June 14.

Known as an 'act of God' clause, force majeure is standard in business contracts and spells out extreme circumstances that excuse a party from their legal obligations.

Gazprom's (GAZP.MM) had no immediate comment.

Uniper, Germany's biggest importer of Russian gas, was among the customers who said they had received a letter, and that it had formally rejected the claim as unjustified.

RWE (RWEG.DE), Germany's largest power producer and another importer of Russian gas, also said it has received a force majeure notice.

"Please understand that we cannot comment on its details or our legal opinion," the company said.

A trading source, asking not to be identified because of the sensitivity of the issue, said the force majeure concerned supplies through the Nord Stream 1 pipeline, a major supply route to Germany and beyond.

Flows through the pipeline are at zero as the link undergoes annual maintenance that began on July 11 and is meant to conclude on Thursday. read more

Europe fears Moscow could keep the pipeline mothballed in retaliation for sanctions imposed on Russia over the war in Ukraine, heightening an energy crisis that risks tipping the region in recession.