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Russia says UK navy blew up Nord Stream, London denies involvement

  • Russia says UK navy personnel blew up pipelines
  • Russia says UK navy personnel helped attack Crimea
  • Russia does not give evidence for claim
  • Britain denies Russian claims

LONDON, Oct 29 (Reuters) – Russia’s defence ministry said on Saturday that British navy personnel blew up the Nord Stream gas pipelines last month, a claim that London said was false and designed to distract from Russian military failures in Ukraine.

Russia did not give evidence for its claim that a leading NATO member had sabotaged critical Russian infrastructure amid the worst crisis in relations between the West and Russia since the depths of the Cold War.

The Russian ministry said that “British specialists” from the same unit directed Ukrainian drone attacks on ships of Russian Black Sea fleet in Crimea earlier on Saturday that it said were largely repelled by Russian forces, with minor damage to a Russian minesweeper.

“According to available information, representatives of this unit of the British Navy took part in the planning, provision and implementation of a terrorist attack in the Baltic Sea on September 26 this year – blowing up the Nord Stream 1 and Nord Stream 2 gas pipelines,” the ministry said.

Britain denied the claim.

“To detract from their disastrous handling of the illegal invasion of Ukraine, the Russian Ministry of Defence is resorting to peddling false claims of an epic scale,” it said.

“This invented story, says more about arguments going on inside the Russian government than it does about the West.”

Russia has previously blamed the West for the explosions that ruptured the Russian-built Nord Stream 1 and Nord Stream 2 pipelines on the bed of the Baltic Sea.

But it had not previously given specific details of who it thinks was responsible for the damage to the pipelines, previously the largest routes for Russian gas supplies to Europe.

A sharp drop in pressure on both pipelines was registered on Sept. 26 and seismologists detected explosions, triggering a wave of speculation about sabotage to one of Russia’s most important energy corridors.

Reuters has not been able to immediately verify any of the conflicting claims about who was to blame for the damage.

PIPELINE MYSTERY

Sweden and Denmark have both concluded that four leaks on Nord Stream 1 and 2 were caused by explosions, but have not said who might be responsible. NATO Secretary-General Jens Stoltenberg has called the damage an act of sabotage.

Sweden has ordered additional investigations to be carried out into the damage done to the pipelines, the prosecutor in charge of the case said in a statement on Friday.

The Kremlin has repeatedly said allegations of Russian responsibility for the damage were “stupid” and Russian officials have said Washington had a motive as it wants to sell more liquefied natural gas (LNG) to Europe.

The United States has denied involvement.

The Nord Stream 1 and Nord Stream 2 pipelines have a joint annual capacity of 110 billion cubic metres – more than half of Russia’s normal gas exports volumes.

Sections of the 1,224-km (760-mile) long pipelines, which run from Russia to Germany, lie at a depth of around 80-110 metres.

Russia said meanwhile that Ukrainian forces attacked ships from the Black Sea Fleet in Sevastopol, the biggest city in Russian-annexed Crimea, in the early hours of Saturday.

“Nine unmanned aerial vehicles and seven autonomous marine drones were involved in the attack,” the defence ministry said.

“The preparation of this terrorist act and the training of servicemen of the Ukrainian 73rd Special Center for Naval Operations were carried out under the guidance of British specialists located in the town of Ochakiv.”

All the air drones were destroyed though minor damage was done to the minesweeper Ivan Golubets, the ministry said. Sevastopol is the headquarters of Russia’s Black Sea Fleet.

Reporting by Reuters
Editing by Guy Faulconbridge and Frances Kerry

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Exxon’s record-smashing Q3 profit nearly matches Apple’s

  • Oil firm smashes Wall Street forecasts with $19.7 billion profit
  • Exxon’s fossil-fuel bets eclipse rivals Shell, TotalEnergies
  • Company projects flat oil output this year on Russia losses

HOUSTON, Oct 28 (Reuters) – Exxon Mobil Corp (XOM.N) on Friday smashed expectations as soaring energy prices fueled a record-breaking quarterly profit, nearly matching that of tech giant Apple.

Its $19.66 billion third-quarter net profit far exceeded recently raised Wall Street forecasts as skyrocketing natural gas and high oil prices put its earnings within reach of Apple’s (AAPL.O) $20.7 billion net for the same period.

As recently as 2013, Exxon ranked as the largest publicly traded U.S. company by market value – a position now held by Apple. Exxon shares rose 3% to $110.70, a record high that gave it a market value of $461 billion.

Oil company profits have soared this year as rising demand and an undersupplied energy market collided with Western sanctions against Russia over its invasion of Ukraine. U.S. exports of gas and oil to Europe have jumped and promise to set all-time profit records for the industry.

The top U.S. oil producer reported a per-share profit of $4.68, exceeding Wall Street’s $3.89 consensus view, on a huge jump in natural gas earnings, continued high oil prices and strong fuel sales.

“Where others pulled back in the face of uncertainty and a historic slowdown, retreating and retrenching, this company moved forward, continuing to invest,” Chief Executive Darren Woods told investors. Its quarterly profits “reflect that deep commitment” as well as higher prices, he added.

Exxon led record gains among oil majors in the second quarter and has leapfrogged Shell Plc (SHEL.L) and TotalEnergies SE (TTEF.PA) with earnings almost twice as big from continued bets on fossil fuels as competitors shifted investment to renewables.

Reuters Graphics Reuters Graphics

Exxon banked $43 billion in the first nine months of this year, 19% more than in the same period of 2008, when oil prices traded at a record level of $140 per barrel.

Earnings from pumping oil and gas tripled last quarter while profit from selling motor fuels jumped tenfold compared with year-ago levels. Natural gas sales to Europe and soaring demand for diesel fuel led the company’s better-than-expected results.

“The refining businesses – both in the U.S. and international – was the star performer,” said Peter McNally, an analyst at Third Bridge.

Those rising fuel profits have renewed calls by U.S. President Joe Biden for companies to invest the windfall from this year’s energy price run-up in production rather than buy back their own shares.

Exxon will maintain its $30 billion share buyback through 2023 while increasing dividends, Chief Financial Officer Kathryn Mikells told Reuters. On Friday, it declared a fourth-quarter per-share dividend of 91 cents, up 3 cents, and will pay $15 billion to shareholders this year.

Exxon said its U.S. oil and gas production from the Permian Basin was near 560,000 barrels of oil and gas per day (boepd), a record. Production for the year will increase about 20% over 2021, said CEO Woods.

“We’re optimizing and adjusting our development plans,” he told analysts, with the full-year production gain below the 25% increase Exxon had forecast in February.

Results also were helped by an almost 100,000-boepd increase over the previous quarter in Guyana, where Exxon leads a consortium responsible for all output in the South American nation.

But its withdrawal from Russia reduced its overall production forecast for the year by about 100,000 barrels per day. Exxon said its Russian assets were expropriated.

“We are going to end up at about 3.7 million barrels a day for the full year,” Mikells said, down from a 3.8 million bpd goal set in February.

Reporting by Sabrina Valle; Editing by Ana Nicolaci da Costa, Jonathan Oatis and Marguerita Choy

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Russia’s Sechin says Taiwan will return to China ‘on schedule’

  • Sechin: China will get Taiwan on time
  • Sechin praises Saudi Arabia
  • Sechin says BP a ‘shadow’ shareholder
  • BP: continuing to pursue an exit

BAKU, Oct 27 (Reuters) – Igor Sechin, chief executive of Russian oil giant Rosneft (ROSN.MM) and one of Vladimir Putin’s closest allies, on Thursday heaped praise on China’s leaders and said Taiwan would return to its “native harbour” on time.

Sechin said that decisions taken by the 20th Communist Party Congress, which cemented Xi Jinping position as the most powerful Chinese leader since Mao Zedong, would provide for a new level of development for the country.

The deepening “no limits” partnership between the rising superpower of China and the natural resources titan of Russia is one of the most intriguing geopolitical developments of recent years – and one the West is watching with anxiety.

“The position of (China’s) leadership is highly respected, which calmly and openly, without false premises, sets out its positions, even on the most difficult issues, such as the problem of Taiwan, which in this regard can be assessed as somewhat exaggerated,” Sechin told an international economic forum in Baku, previously held in Italy’s Verona.

He said U.S. attempts to create its own complex microchip industry showed that “Taiwan’s return to its native harbour” was “on schedule”.

Taiwan’s Foreign Ministry condemned the comments, saying only the island’s people could decide their future.

“Neither our government, people nor the international community can accept absurd remarks that are in China’s cortege or demean Taiwan’s sovereign status,” it said in a statement.

China claims democratically governed Taiwan as its own territory and has ramped up military and political pressure against the island over the past two years. Taipei strongly rejects Beijing’s sovereignty claims.

Russia has repeatedly warned the United States against meddling in China’s affairs while President Vladimir Putin has explicitly backed Xi over the fate of the island where the defeated Republic of China government fled in 1949 after losing the Chinese civil war to Mao’s communists.

BP’S DIVIDEND

Sechin said Rosneft had transferred $700 million in second-half 2021 dividends into special accounts for BP (BP.L), which remained Rosneft’s “shadow” shareholder despite a decision to leave the company following the start of what Moscow calls its “special military operation” in Ukraine.

BP said its position on Russia has remained unchanged.

“In February we announced our decision to exit Rosneft and our other Russian businesses – we continue to pursue that,” it said in emailed comments.

Sechin also said that Saudi Arabia’s position on the global oil market was “reasonable” and based on analysis of oil supply and demand.

The United States, he said, had tried to persuade Saudi Arabia to postpone oil output cuts as part of OPEC+.

“Today, the energy policy of the (Joe) Biden administration is solving exclusively pre-election tasks with a planning horizon of two weeks, given that the elections to the U.S. Congress are on November 8,” Sechin said.

“This includes attempts to persuade Saudi Arabia to at least postpone the announcement of this decision until the elections.”

The OPEC+ group of global leading oil producers, which includes Saudi Arabia and Russia, agreed this month to cut its combined output by 2 million barrels per day despite opposition from the United States, which wants lower fuel prices.

Saudi Arabia rejected criticism of an OPEC+ decision to cut its oil production target despite U.S. objections and said that Washington’s request to delay the cut by a month would have had negative economic consequences.

Reporting by Nailia Bagirova and Olesya Astakhova; Additional reporting by Ron Bousso and Ben Blanchard in London; Writing by Vladimir Soldatkin; Editing by Guy Faulconbridge, Nick Macfie and Mike Harrison

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Elon Musk sells $1 million worth of new perfume, ‘Burnt Hair’

Oct 12 (Reuters) – The world’s richest man, Elon Musk, has scented a new opportunity to capitalise on quirky products, launching a perfume called “Burnt Hair” that he said sold 10,000 bottles to earn a million dollars in just a few hours.

“With a name like mine, getting into the fragrance business was inevitable – why did I even fight it for so long!?” Musk asked on Twitter, where he now describes himself as a perfume salesman.

“The essence of repugnant desire” is the website description of his latest offering, which costs $100 a bottle and is set to start shipping in the first quarter of 2023, making good on a product Musk first touted in September.

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Previous brainwaves have included Tesla’s (TSLA.O) own-brand tequila, launched in 2020, and a pair of “short shorts” to signify Musk’s victory over investors who bet against the electric vehicle maker, now the world’s most valuable car firm.

SpaceX owner and Tesla CEO Elon Musk smiles at the E3 gaming convention in Los Angeles, California, U.S., June 13, 2019. REUTERS/Mike Blake/File Photo

His Boring Company, a tunnelling firm last valued at $5.7 billion, sold flamethrowers at $500 apiece in early 2018, raising $10 million. He also sold 50,000 Boring Company hats.

Musk’s ambitions over the years have ranged from colonising Mars to creating a new sustainable energy economy, and in the process he has built Tesla, rocket company SpaceX, and smaller firms.

Last week the billionaire proposed to proceed with his original $44-billion bid to take Twitter Inc (TWTR.N) private, calling for an end to a lawsuit by the social media company that could have forced him to pay up, whether he wanted to or not.

If successful, a deal would put Musk in charge of one of the most influential media platforms and end months of litigation that damaged Twitter’s brand and fed his reputation for erratic behavior.

The Boring Company did not respond to a query on how long it planned to keep the perfume listed.

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Reporting by Akriti Sharma and Shubham Kalia in Bengaluru; Editing by Clarence Fernandez

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Druzhba pipeline leak reduces Russian oil flows to Germany

WARSAW, Oct 12 (Reuters) – Germany said on Wednesday it was receiving less oil but still had adequate supplies, after Poland found a leak in the Druzhba pipeline that delivers crude from Russia to Europe that Warsaw said was probably caused by an accident rather than sabotage.

The discovery of the leak in the main route carrying oil to Germany, which operator PERN said it found on Tuesday evening, comes as Europe is on high alert over its energy security as it faces a severe crisis in the aftermath of Moscow’s invasion of Ukraine which has cut supplies of gas.

“Security of supply in Germany is currently guaranteed,” an economy ministry spokesperson said in an emailed statement. “The refineries in Schwedt and Leuna continue to receive crude oil via the Druzhba pipeline.”

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The Schwedt refinery, which supplies 90% of Berlin’s fuel, said in an emailed statement that deliveries were taking place at reduced capacity.

Germany said it was hoping for more information soon from Poland about the cause of the leak and how it can be repaired.

Europe has been on high alert over the security of its energy infrastructure since major leaks were found last month in the Nord Stream 1 and 2 gas pipelines running from Russia to Europe under the Baltic Sea. Both the West and Russia have blamed sabotage.

However, Poland’s top official in charge of energy infrastructure, Mateusz Berger, told Reuters by telephone that the leak in the Druzhba pipeline was most likely caused by “accidental damage”.

“We are living in turbulent times, different connotations are possible, but at this stage we have no grounds at all to believe that,” he said, when asked about the possibility of sabotage.

Berger said the leak was located 70 km (44 miles) west from Plock, where Poland’s biggest refinery owned by PKN Orlen is located. As a result, part of the shipping capacity towards Germany was not available, he said, adding that repairs would likely “not take long”.

PERN said supplies to Germany were reduced but continuing.

Reuters Graphics

GERMAN, POLAND REFINERY SUPPLIES

The Druzhba oil pipeline, whose name means “friendship” in Russian, is one of the world’s largest, supplying Russian oil to much of central Europe including Germany, Poland, Belarus, Hungary, Slovakia, the Czech Republic and Austria.

Russia’s Transneft state-owned pipeline monopoly said that oil continues to be pumped towards Poland.

Poland’s PKN Orlen (PKN.WA) said that oil supplies to its Plock refinery were not interrupted while Czech pipeline operator MERO said it had not seen any change in flows to the Czech Republic.

“The main action (we are taking) is to pump out the liquid and locate the leak and stop it,” fire brigade spokesman Karol Kierzkowski told state broadcaster TVP Info.

“When the pressure decreases, the leak will stop and allow us to reach the leak,” he said, adding that it was too early to establish the cause and there was no danger to the public.

Firefighters in the mid-northern Kujawsko-Pomorskie region of Poland said they had pumped about 400 cubic metres of oil and water from the site of the leak which was in the middle of a corn field.

The second line of the pipeline, and other elements of PERN’s infrastructure, were working as normal, PERN said.

“At this point, all PERN services (technical, operational, in-house fire brigade and environmental protection) are taking action in accordance with the algorithms provided for this type of situation,” the operator said.

The total capacity of the western section of the pipeline that ships oil from central Poland to Germany is 27 million tonnes of crude oil per year.

Germany’s Schwedt refinery is particularly dependent on Druzhba.

The German government aims to eliminate imports of oil from Russia by the end of the year under European Union sanctions. But in the first seven months of the year, Russia was still its top supplier, accounting for just over 30% of oil imports.

As Germany looks for alternative supplies for Schwedt, Druzhba could be instrumental in supplying oil via the Polish port in Gdansk.

The German government has also been in talks to secure oil from Kazakhstan to supply Schwedt, but that oil would have to flow to Germany via the Druzhba pipeline too.

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Reporting by Reuters bureaus writing by Alan Charlish and Marek Strzelecki; Editing by Jan Harvey and Elaine Hardcastle

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Russian spy chief: West was behind sabotage of Nord Stream

  • Spy chief: West was involved
  • Spy chief: West trying to cover up
  • Putin: this was an act of international terrorism

TBILISI/LONDON, Sept 30 (Reuters) – Russia’s top spy said on Friday that Moscow had intelligence indicating that the West was behind what he said was a “terrorist act” against the Nord Stream gas pipelines under the Baltic Sea.

A sharp drop in pressure on both pipelines was registered on Sept. 26 and seismologists detected explosions, triggering a wave of speculation about who might have sabotaged one of Russia’s most important energy corridors.

The European Union said it suspected sabotage caused the damage to the Gazprom-led (GAZP.MM) Nord Stream 1 and 2 pipelines in Swedish and Danish waters. The White House has dismissed Russian allegations it was behind the incidents.

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“We have materials that point to a Western trace in the organisation and implementation of these terrorist acts,” Sergei Naryshkin, the director of Russia’s Foreign Intelligence Service (SVR), was shown telling reporters on state television.

The spy chief’s remarks are the most direct public accusation against the West from a senior Russian official. He did not say what evidence Russia had, but said the West was trying to obscure who carried out the attack.

“The West is doing everything to hide the true perpetrators and organizers of this international terrorist act,” Naryshkin said. The SVR is the direct successor to the once mighty First Chief Directorate of the Soviet-era KGB.

President Vladimir Putin on Thursday said the “unprecedented sabotage” against the Nord Stream gas pipelines was “an act of international terrorism.” read more

The Kremlin declined to comment on Naryshkin’s remarks but said there needed to be a thorough international investigation into the incidents.

Sweden’s energy minister said on Friday it was “very likely” that the attack on the pipelines was done on purpose by a state actor.

Since the ruptures were first detected earlier this week, officials in Moscow have hinted that the West, led by the U.S., could be behind the attack. On Thursday, Russian Foreign Ministry spokeswoman Maria Zakharova said Washington stood to gain from the pipelines being disrupted.

Neither Nord Stream 1 or 2 were in operation when the ruptures were discovered on Monday, but both contained gas. Nord Stream AG, the operator for the Nord Stream 1 pipeline, said it expects the gas leak to stop by Monday, but that it has not been able to access the area to assess the damage.

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Reporting by Reuters; editing by Guy Faulconbridge

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Russia says Nord Stream likely hit by state-backed ‘terrorism’

  • Kremlin says damage to pipelines looks like ‘terrorism’
  • EU official says leaks change nature of Ukraine conflict
  • European officials say Russian ships seen nearby -CNN

MOSCOW/BRUSSELS, Sept 29 (Reuters) – Russia said on Thursday that leaks spewing gas into the Baltic Sea from pipelines to Germany appeared to be the result of state-sponsored “terrorism”, as an EU official said the incident had fundamentally changed the nature of the conflict in Ukraine.

The European Union is investigating the cause of the leaks in the Gazprom-led (GAZP.MM) Nord Stream 1 and 2 pipelines and has said it suspects sabotage was behind the damage off the coasts of Denmark and Sweden.

Four days after the leaks were first spotted, it remains unclear who might be behind any attack on the pipelines that Russia and European partners spent billions of dollars building.

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“This looks like an act of terrorism, possibly on a state level,” Kremlin spokesman Dmitry Peskov said, adding: “It is very difficult to imagine that such an act of a terrorism could have happened without the involvement of a state of some kind”.

Russia also said the United States stood to benefit, in a war of words with the West over who was responsible. Moscow has previously said the leaks occurred in territory that is “fully under the control” of U.S. intelligence agencies.

Russia’s Foreign Ministry spokeswoman Maria Zakharova told a news briefing Washington would be able to boost its liquefied natural gas (LNG) sales if the pipelines were put out of use.

But U.S. news channel CNN, citing three sources, reported that European security officials had observed Russian navy support ships and submarines not far from the leaks.

Asked to comment on the CNN report, Peskov said there had been a much larger NATO presence in the area.

Zakharova called for an EU investigation to be “objective”, and said Washington would have to “explain itself” – a reference to President Joe Biden’s comment in February that, if Russia invaded Ukraine, “there will no longer be a Nord Stream 2”.

The White House has dismissed Russian allegations that it was responsible for the damage to Nord Stream and Biden’s comments were referring to efforts at the time to secure certification to bring Nord Stream 2 into commercial use.

Leaks from the Nord Stream 1 pipeline are likely to be stopped on Monday, the pipeline’s operator told Reuters.

But the spokesperson for Nord Stream AG said it was not possible to give any forecasts for the pipeline’s future operation until the damage had been assessed.

Russia had halted deliveries via Nord Stream 1, saying Western sanctions had hampered operations.

While neither pipeline was supplying gas to Europe when the leaks were first detected, both had gas in them.

European leaders and Moscow say they can not rule out sabotage. Map of Nord Stream pipelines and locations of reported leaks

‘ROBUST RESPONSE’

EU leaders will discuss the ramifications of the damage next week at a summit in Prague, an EU official said.

“The strategic infrastructure in the entire EU has to be protected,” the EU official in Brussels said.

“This changes fundamentally the nature of the conflict as we have seen it so far, just like the mobilisation … and the possible annexation,” the EU official said, referring to Russia’s mobilising of more troops for the war and expectations President Vladimir Putin will annex Ukrainian regions.

Russia’s war with Ukraine and the resulting energy standoff between Moscow and Europe, which has left the EU scrambling to find alternative gas supplies, are set to dominate the EU summit on Oct. 7.

The European Union on Wednesday warned of a “robust and united response” should there be more attacks and stressed the need to protect its energy infrastructure, but EU officials have avoided pointing a figure directly at possible perpetrators.

Next week, EU leaders will discuss an eighth sanctions package on Russia which European Commission chief Ursula von der Leyen has proposed, including tighter trade restrictions, more blacklistings and an oil price cap for third countries.

The EU official said he expected the 27-nation bloc to agree parts of the sanctions package before the summit, such as the blacklisting of additional individuals and some of the trade restrictions with regard to steel and technology.

Other topics such as the oil price cap or the sanctioning of banks may not be solved before the summit, he added.

EU states need unanimity to impose sanctions and Hungary’s prime minister Viktor Orban has been a vocal critic, saying sanctions have “backfired”, driving up energy prices and dealing a blow to European economies.

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Writing by Alexander Smith; Editing by Elaine Hardcastle and Edmund Blair

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Fourth leak found on Nord Stream pipelines, Swedish coast guard says

OSLO, Sept 29 (Reuters) – Sweden’s coast guard discovered a fourth gas leak on the damaged Nord Stream pipelines earlier this week, a spokesperson told the Svenska Dagbladet newspaper.

The European Union suspects sabotage was behind the gas leaks on the subsea Russian pipelines to Europe and has promised a “robust” response to any intentional disruption of its energy infrastructure.

“Two of these four are in Sweden’s exclusive economic zone,” coast guard spokesperson Jenny Larsson told the paper late on Wednesday. The other two breaches are in the Danish exclusive economic zone.

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The coast guard did not immediately respond to a Reuters request for comment on Thursday.

While neither pipeline was in use at the time of the suspected blasts, they were filled with gas that has been spewing out in the Baltic Sea since Monday’s ruptures.

The fourth leak was on the Nord Stream 2 pipeline, in close proximity to a larger hole found on the nearby Nord Stream 1, the Swedish coast guard said.

This week, Danish authorities reported one hole in each of the two pipeline sections in their waters.

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Reporting by Terje Solsvik; Editing by Stine Jacobsen and Clarence Fernandez

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Gas leaks in Russian pipelines to Europe trigger sabotage probe

  • Polish PM blames sabotage, without citing evidence
  • Russia say leaks threaten Europe’s energy security
  • Footage shows gas bubbles churning sea surface
  • Operator says damage to Nord Stream 1 ‘unprecedented’
  • Crisis over Russian gas has sent prices soaring

STOCKHOLM/COPENHAGEN, Sept 27 (Reuters) – Europe was investigating major leaks in two Russian pipelines that spewed gas into the Baltic Sea on Tuesday as Sweden launched a preliminary probe into possible sabotage to infrastructure at the centre of an energy standoff.

But it remained far from clear who might be behind any foul play, if proven, on the Nord Stream pipelines that Russia and European partners spent billions of dollars building.

“We have established a report and the crime classification is gross sabotage,” a Swedish national police spokesperson said.

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Poland’s prime minister blamed sabotage for the leaks, without citing evidence. The Danish premier said it could not be ruled out.

Russia, which slashed gas deliveries to Europe after the West imposed sanctions over Moscow’s invasion of Ukraine, also said sabotage was a possibility and that the leaks undermined the continent’s energy security.

A senior Ukrainian official, meanwhile, called the incident a Russian attack to destabilise Europe, without giving proof.

“We see clearly that it’s an act of sabotage, related to the next step of escalation of the situation in Ukraine,” Polish Prime Minister Mateusz Morawiecki said at the opening of a new pipeline between Norway and Poland.

Seismologists in Denmark and Sweden registered powerful blasts in the vicinity of the leaks on Monday, Sweden’s National Seismology Centre told public broadcaster SVT. German geological research centre GFZ also said a seismograph on the Danish island of Bornholm had twice recorded spikes on Monday.

The Nord Stream pipelines have been flashpoints in an escalating energy war between capitals in Europe and Moscow that has damaged major Western economies, sent gas prices soaring and sparked a hunt for alternative supplies.

Denmark’s armed forces on Tuesday released a video showing bubbles boiling up to the surface of the sea. The largest gas leak had caused a surface disturbance of well over 1 km (0.6 mile) in diameter, the armed forces said. read more

Sweden’s Maritime Authority issued a warning about two leaks in the Nord Stream 1 pipeline the day after a leak on the nearby Nord Stream 2 pipeline was discovered that prompted Denmark to restrict shipping and impose a small no fly zone.

European leaders and Moscow say they can not rule out sabotage. Map of Nord Stream pipelines and locations of reported leaks

‘RISK OF EXPLOSIONS’

The leaks were very large and it could take perhaps a week for gas to stop draining out of the Nord Stream 2 pipeline, the head of Denmark’s Energy Agency Kristoffer Bottzauw said.

Ships could lose buoyancy if they entered the area.

“The sea surface is full of methane, which means there is an increased risk of explosions in the area,” Bottzauw said.

Danish Prime Minister Mette Frederiksen said sabotage could not be ruled out. “We are talking about three leaks with some distance between them, and that’s why it is hard to imagine that it is a coincidence,” she said.

Kremlin spokesperson Dmitry Peskov called it “very concerning news. Indeed, we are talking about some damage of an unclear nature to the pipeline in Denmark’s economic zone.” He said it affected the continent’s energy security.

Neither pipeline was pumping gas to Europe at the time the leaks were found amid the dispute over the war in Ukraine, but the incidents will scupper any remaining expectations that Europe could receive gas via Nord Stream 1 before winter.

Operator Nord Stream said the damage was “unprecedented”.

Both pipelines contained gas although they were not in operation.

Gazprom (GAZP.MM), the Kremlin-controlled company with a monopoly on Russian gas exports by pipeline, declined comment.

“There are some indications that it is deliberate damage,” said a European security source, while adding it was still too early to draw conclusions. “You have to ask: Who would profit?”

CUTTING SUPPLIES

Russia reduced gas supplies to Europe via Nord Stream 1 before suspending flows altogether in August, blaming Western sanctions for causing technical difficulties. European politicians say that was a pretext to stop supplying gas.

The new Nord Stream 2 pipeline had yet to enter commercial operations. The plan to use it to supply gas was scrapped by Germany days before Russia sent troops into Ukraine, in what Moscow calls a “special military operation”, in February.

“The multiple undersea leaks mean neither pipeline will likely deliver any gas to the EU over the coming winter, irrespective of political developments in the Ukraine war,” Eurasia Group wrote in a note.

European gas prices rose on the news, with the benchmark October Dutch price climbing almost 10% on Tuesday. Prices are still below this year’s peaks but remain more than 200% higher than in early September 2021.

Norway’s Petroleum Safety Authority (PSA) had urged oil companies on Monday to be vigilant about unidentified drones seen flying near Norwegian offshore oil and gas platforms, warning of possible attacks.

The Swedish Maritime Administration (SMA) said two leaks on Nord Stream 1, one in the Swedish economic zone and another in the Danish zone, were northeast of Denmark’s Bornholm.

“We are keeping extra watch to make sure no ship comes too close to the site,” an SMA spokesperson said.

The Danish authorities asked that the level of preparedness in Denmark’s power and gas sector be raised after the leaks, a step that would require heightened safety procedures for power installations and facilities.

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Reporting by Reuters bureaus; Writing by Matthias Williams, Jan Harvey and Alexander Smith; Editing by Edmund Blair and Emelia Sithole-Matarise

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Gas from Russia’s Nord Stream 2 pipeline leaks into Baltic Sea

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BERLIN, Sept 26 (Reuters) – The Danish authorities on Monday asked ships to steer clear of a five nautical mile radius off the island of Bornholm after a gas leak overnight from the defunct Russian-owned Nord Stream 2 pipeline drained into the Baltic Sea.

The German government said it was in contact with the Danish authorities and working with local law enforcement to find out what caused pressure in the pipeline to plummet suddenly. Denmark’s energy ministry declined to comment.

The pipeline has been one of the flashpoints in an escalating energy war between Europe and Moscow since Russia’s invasion of Ukraine in February that has pummelled major Western economies and sent gas prices soaring.

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“A leak today occurred on the Nord Stream 2 pipeline in the Danish area,” said Denmark’s energy agency in a statement.

Danish maritime authorities had issued a navigation warning and established a zone around the pipeline “as it is dangerous for ship traffic”, it added.

Nord Stream 2’s operator said pressure in the pipeline, which had contained some gas sealed inside despite never becoming operational, dropped from 105 to 7 bars overnight.

The pipeline, which was intended to double the volume of gas flowing from St. Petersburg under the Baltic Sea to Germany, had just been completed and filled with 300 million cubic metres of gas when Germany cancelled it days before the invasion.

“Overnight the Nord Stream 2 landfall dispatcher registered a rapid gas pressure drop on Line A of the Nord Stream 2 natural gas pipeline,” Nord Stream 2’s operator said in a statement.

“Investigation is ongoing.”

NO CLARITY

European countries have resisted Russian calls to allow the Nord Stream 2 pipeline to operate and accused Moscow of using energy as a weapon. Russia denies doing so and blames the West for gas shortages.

“We are currently in contact with the authorities concerned in order to clarify the situation. We still have no clarity about the causes and the exact facts,” said a statement from the German economy ministry.

The Swiss-based operator, which has legally been wound up, said it had informed all relevant authorities about the leak.

Russian gas exporter Gazprom (GAZP.MM) referred questions about the incident to the Nord Stream 2 operator.

Russia has cut off gas supplies to several countries and also halted flows through the Nord Stream 1 pipeline, blaming Western sanctions for hindering operations.

President Vladimir Putin in September chided the West for keeping Nord Stream 2 shut. read more

Monday’s gas leak happened a day before the ceremonial launch of the Baltic Pipe carrying gas from Norway to Poland.

The project is a centrepiece of Warsaw’s efforts to diversify from Russian gas. Danish Prime Minister Mette Frederiksen is due to travel to Poland on Tuesday to mark the occasion.

Nord Stream 2 was widely unpopular among Danish lawmakers and the country in 2017 passed a law which allowed it to ban the project from passing through its territorial waters on security grounds.

But Nord Stream 2 later changed the original route to steer it through Denmark’s exclusive economic zone, where this veto could not be applied.

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Reporting by Thomas Escritt, Christian Kraemer, Stine Jacobsen, Terje Solsvik, Marek Strzelecki and Matthias Williams; Writing by Matthias Williams; Editing by Andrea Ricci and Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

Thomas Escritt

Thomson Reuters

Berlin correspondent who has investigated anti-vaxxers and COVID treatment practices, reported on refugee camps and covered warlords’ trials in The Hague. Earlier, he covered Eastern Europe for the Financial Times. He speaks Hungarian, German, French and Dutch.

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