Tag Archives: OILI08

Bulgarian GERB ahead in election, but coalition outlook uncertain

SOFIA, Oct 2 (Reuters) – Bulgaria’s GERB party of ex-Prime Minister Boyko Borissov looked set for a narrow win in Sunday’s election, the fourth in less two years, as voters sought predictability from a former leader amid steep inflation and the war in Ukraine.

Exit polls by Gallup International and Alpha Research showed the centre-right GERB with 23.6%-25.5% of ballots. Its main rival, the reformist We Continue the Change of Kiril Petkov, whose cabinet collapsed in June, was next with 19.5%-19.9%.

If confirmed, the result would herald tough coalition talks ahead that could still end in a hung parliament or even another election.

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Either would prolong policy instability and raise the prospect of Sofia missing its 2024 target date for entry into the euro zone.

Many of Borissov’s political adversaries accuse him of allowing widespread corruption to fester during his decade-long rule that ended last year, complicating efforts to put together a functioning majority.

But for some voters in the European Union’s poorest member state, Borissov spells a promise of stability and diplomatic maturity needed to navigate Bulgaria’s complex relationship with Russia.

Once Moscow’s key ally in the EU, Sofia has turned away following Russia’s Feb. 24 invasion of Ukraine, becoming the first EU member alongside Poland, an anti-Russian hawk, to see its gas supplies cut off by Gazprom.

During the campaign, Borissov appeared to thread carefully, saying he would toe the EU and NATO line on Russia policy but has also sent a signal to the pro-Russian electorate that he would be able to restore relations once the war ends.

“There is a war in the world… It is important for the country to stay on its Euro-Atlantic course,” he said after casting his ballot.

Petkov, a 42-year-old Harvard graduate, who refuses to govern with Borissov, said on Sunday Bulgarians were choosing between the politics of the transition period that was marred by endemic graft and a more transparent Bulgaria that would be a reliable EU member.

Analysts say political parties, aware of economic risks from the war in Ukraine, a difficult winter ahead and voters’ frustration with political instability, could shelve their differences and opt for a technocrat government.

“Many Bulgarians expect that compromises will be made and want to see a government. It will not be easy, but that is what the politicians are for,” Boryana Dimitrova, with pollster Alpha Research, said after exit polls were released.

Up to six other groups were expected to enter parliament, including the ethnic Turkish MRF party, the Socialists and the pro-Russian, nationalist Revival.

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Reporting by Tsvetelia Tsolova
Editing by Nick Macfie, Gareth Jones, Justyna Pawlak and Frances Kerry

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Italy’s Eni working with Gazprom to resolve Russian gas flow halt

MILAN, Oct 1 (Reuters) – Italy’s Eni (ENI.MI) said it not would receive any of the gas it had requested from Russia’s Gazprom (GAZP.MM) for delivery on Saturday, but the firms said they were working to fix this.

Russian gas supplies through the Tarvisio entry point will be at zero for Oct. 1, Eni, the biggest importer of Russian gas in Italy, said in a statement on its website.

Moscow and several European countries, including Germany, have been at loggerheads over the supply of natural gas from Russia since the country’s invasion of Ukraine in February.

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The European Union says that Moscow is using the flow of gas needed for energy in the region as an economic weapon, something that Russia has consistently denied, blaming instead the impact of Western sanctions for any disruptions in supply.

Gazprom said in a statement on Telegram that the problem was the result of regulatory changes in Austria.

Russia’s state-owned energy giant said that gas transit through Austria had been suspended after the country’s grid operator refused to confirm transport nominations.

Austria’s gas grid operator was not immediately available for comment on Saturday to respond to Gazprom’s comments.

A spokesperson for Eni, however, said that Austria continued to receive gas on its border with Slovakia.

Italy has secured additional gas imports this year from alternative suppliers to make up for a fall in flows from Russia after the start of the war in Ukraine.

Russian gas now accounts for around 10% of Italian imports, down from around 40%, a source close to the matter said, while the share for Algeria and the Nordics has increased.

Elsewhere, Gazprom cut natural gas supplies to Moldova by around 30%, Vadim Ceban, director of gas firm Moldovagaz, said.

On Friday, Moldova’s deputy Prime Minister Andrei Spinu said Gazprom had warned it about the reduction.

Spinu said on Saturday that technical problems caused the reduction and Moldova would ask Gazprom to increase supplies.

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Reporting by Federico Maccioni and Francesca Landini in Milan, additional reporting by Mark Trevelyan in London, Michael Shields in Zurich and Alexander Tanas in Chisinau, editing by Gareth Jones, Kirsten Donovan and Alexander Smith

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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

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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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Major earthquake strikes Mexico on ‘cursed’ anniversary, at least one dead

MEXICO CITY, Sept 19 (Reuters) – A powerful earthquake struck western Mexico on Monday on the anniversary of two devastating temblors, killing at least one person, damaging buildings, knocking out power and sending residents of Mexico City scrambling outside for safety.

One person was killed in the Pacific port of Manzanillo when a department store roof collapsed on them, the government said. Authorities also reported damage to several hospitals in the western state of Michoacan near the epicenter, which was in a sparsely populated part of Mexico. One person was injured by falling glass at one of the hospitals, the government said.

The magnitude 7.6 quake hit shortly after 1 p.m. (1800 GMT) near the western coast and close to the Michoacan border with the state of Colima – where Manzanillo is located, the U.S. Geological Survey (USGS) said.

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The quake was relatively shallow, at only 15 km (9 miles) deep, which would have amplified its impact.

Reuters Graphics

The U.S. Pacific Tsunami Warning Center issued a tsunami warning for parts of Mexico’s coast, saying waves reaching 1 to 3 meters (3 to 9 feet) above the tide level were possible.

Mexico City Mayor Claudia Sheinbaum said there were no immediate reports of major damage in the capital after the tremors, which rumbled through Mexico on the same day as destructive quakes battered the country in 1985 and 2017.

“It seems like a curse,” Isa Montes, a 34-year-old graphic designer in the city’s central Roma neighborhood, said of the quake’s timing as helicopters flew overhead, surveying the city.

The National Autonomous University of Mexico (UNAM), one of the country’s most prestigious seats of higher learning, said there was no scientific explanation for three major quakes on the same day and attributed it to pure coincidence.

But others could not quite believe it.

“It’s this date. There’s something about the 19th,” said Ernesto Lanzetta, a business owner in the Cuauhtemoc borough of the city. “The 19th is a day to be feared.”

Thousands of people were killed in the Sept. 19, 1985 earthquake and more than 350 died in the Sept. 19, 2017 quake.

Many Mexicans reacted to the latest quake by posting an array of memes online venting their amazement. read more

Before first announcing the death in Manzanillo, President Andres Manuel Lopez Obrador had said there was material damage near the epicenter. Images posted on social media showed buildings badly damaged.

Mexican authorities said the seismic alert had sounded nearly two minutes before the quake struck, giving residents time to evacuate their homes.

Still, some people in the capital struggled to grasp it was a real quake as the government had already sounded the alarm earlier in the day as a practice exercise commemorating the past earthquakes on the same day.

POWER OUT

In Coalcoman, Michoacan, not far from the epicenter, pictures showed shingles knocked off homes and building walls cracked by the force of the quake. In one store, merchandise was scattered across the floor.

Power was knocked out in parts of Roma in Mexico City, some 400 km (250 miles) from the epicenter. The national power utility said outages hit 1.2 million users.

Residents of Roma stood on the streets cradling pets, while tourists visiting a local market with a guide were visibly confused and upset. Traffic lights stopped working, and people clutched their phones, sending text messages or waiting for calls to get through.

Clara Ferri, who owns an Italian bookshop in Roma, said she told a customer to get out as soon as she heard the windows rattle, her senses attuned to the sounds of incipient earthquakes after 16 years in the location.

“It was like the dentist’s drill for me,” she said.

The rumbling grew in intensity, and as Ferri gathered with neighbors at an intersection, she looked up to see the eight-story building that houses her shop sway from side to side.

When she returned, shelves had toppled like dominos, sending over 1,000 books into heaps on the floor.

Officials roped off the sidewalk, which was littered with masonry that appeared to have fallen off the building. Residents trickled out with pets and suitcases, preparing to spend the night elsewhere, and a woman carefully escorted her 89-year-old uncle in his blue-and-white striped pajamas.

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Additional reporting by Isabel Woodford, Stefanie Eschenbacher, Anthony Esposito, Raul Cortes and Mexico City Newsroom; writing by Dave Graham; editing by Stephen Eisenhammer, Sandra Maler and Cynthia Osterman

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Europe races to prepare for energy crunch this winter

  • Spain may shut energy-intensive industries at peak times
  • France prepares to send gas to Germany in October
  • Germany to sign LNG contracts in UAE
  • Berlin still working on Uniper bailout

BERLIN/LISBON, Sept 19 (Reuters) – Germany was pressing on Monday to secure liquefied natural gas contracts with Gulf producers and other European states outlined measures to conserve energy, with Russian flows running at severely reduced levels as winter approaches.

Berlin said it aimed to sign LNG contracts in the United Arab Emirates to supply terminals it is building, now that the vital Nord Stream 1 gas pipeline from Russia is shut, while Spain, France others outlined contingency planning to try to avoid power cuts. read more

“If everything goes well, savings in Germany are high and we have a bit of luck with the weather, we … have a chance at getting through the winter comfortably,” Economy Minister Robert Habeck said after a tour of a future LNG terminal in northern Germany. read more

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The sharp drop supplies from Russia, which previously supplied about 40% of the European Union’s gas needs, has left governments scrambling to find alternative energy resources and has prompted fears of possible power cuts and a recession.

Russia has blamed Western sanctions imposed on Moscow for its invasion of Ukraine for hampering pipeline deliveries. European politicians say Moscow is using energy as weapon.

Germany’s RWE (RWEG.DE) said it was “in good and constructive talks” with Qatar about LNG deliveries, before a planned visit by Chancellor Olaf Scholz to the Gulf. Ailing importer Uniper (UN01.DE) said it had not reached a deal yet.

Germany will also be able to count on gas flowing from France from around Oct. 10, the head of France’s CRE energy regulator said, following an announcement by President Emmanuel Macron that the two would help each other with energy supplies.

Although deliveries via the Nord Stream 1 have halted, Russian gas flows to Europe via Ukraine, although much reduced, have continued.

In France, CRE chief Emmanuelle Wargon said that if energy group EDF’s race to repair corrosion-hit nuclear reactors suffers delays, “exceptional” measures this winter could include localised electricity cuts. read more

“But there will be no gas cuts for households. Never,” she told franceinfo broadcaster.

‘DIFFICULT WINTER’

Across the Pyrenees, Spanish Industry Minister Reyes Maroto said obliging energy-intensive companies to close during consumption peaks was an option this winter if required.

The companies would be compensated financially, she said in an interview with Spanish news agency Europa Press, adding there was no need to impose such closures now.

And Finns were warned by national grid operator Fingrid that they should be prepared for power outages. read more

Reflecting the disruptions caused across the continent, Finnish power retailer Karhu Voima Oy said it had filed for bankruptcy due to a sharp rise in electricity prices.

Meanwhile in Germany, Habeck said Berlin will not let large gas importers like VNG become insolvent, while an economy ministry spokesperson said “focused” discussions on aid were ongoing with ailing importer Uniper (UN01.DE). read more

The German economy is contracting already and will likely get worse over the winter months as gas consumption is cut or rationed, the country’s central bank said on Monday.

In Portugal, the government was blunt about its concerns.

“From one day to another, we may have a problem, such as not being supplied the volume of gas that is planned,” environment and energy minister Duarte Cordeiro said, adding that Portugal was working to diversify its supplies to boost energy security.

“Portugal has been preparing, like all of Europe, for what will be a difficult winter,” he said, urging the European Commission to move forward with plans for a joint EU gas purchasing platform and defining import prices. read more

NORD STREAM 1 REQUESTS

Russia, which had supplied about 40% of the European Union’s gas before its February invasion of Ukraine, has said it closed Nord Stream 1 because Western sanctions hindered operations. European politicians say that is a pretext and accuse Moscow of using energy as a weapon.

German buyers briefly reserved capacity on Monday to receive Russian gas via the Nord Stream 1 pipeline, once one of Europe’s major gas supply routes, for the first time since the line was shut three weeks ago. But they soon dropped the requests.

It was not immediately clear why buyers had submitted requests for capacity when Russia has given no indication since it shut the line that it would restart any time soon. read more

Meanwhile, Ukraine accused Russian forces of shelling near the Pivdennoukrainsk nuclear power plant in Ukraine’s southern Mykolaiv region. read more

Since its forces were driven out of Kharkiv, Russia has repeatedly fired at power plants, water infrastructure and other civilian targets in what Ukraine says is retaliation for defeats on the ground. Moscow denies deliberately targeting civilians. read more

‘GOING BACK IN TIME’

European gas storages are now 85.6% full, with stocks in Germany close to 90%, data from Gas Infrastructure Europe showed.

“Stocks are set to continue to be built further, supported by the finalisation of planned maintenance work and increasing Norwegian flows as of this week,” analysts at Energi Danmark said in a morning note.

Europe’s imports of thermal coal in 2022 could be the highest in at least four years, analysts said.

“Europe is going back in time,” Rodrigo Echeverri, head of research at Noble Resources, told a conference.

Oil prices fell by more than 2% on Monday, pressured by expectations of weaker global demand and by U.S. dollar strength ahead of a potentially large interest rate hike, though supply worries limited the decline. read more

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Reporting by Reuters bureaus; Writing by Ingrid Melander; Editing by Edmund Blair, Mark Heinrich, Hugh Lawson and David Evans

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Putin tells Europe: if you want gas then open Nord Stream 2

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SAMARKAND, Uzbekistan, Sept 16 (Reuters) – President Vladimir Putin on Friday denied Russia had anything to do with Europe’s energy crisis, saying that if the European Union wanted more gas it should lift sanctions preventing the opening of the Nord Stream 2 pipeline.

Speaking to reporters after the Shanghai Cooperation Organisation summit in Uzbekistan, Putin blamed what he called “the green agenda” for the energy crisis, and insisted that Russia would fulfil its energy obligations.

“The bottom line is, if you have an urge, if it’s so hard for you, just lift the sanctions on Nord Stream 2, which is 55 billion cubic metres of gas per year, just push the button and everything will get going,” Putin said.

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Nord Stream 2, which lays on the bed of the Baltic Sea almost in parallel to Nord Stream 1, was built a year ago, but Germany decided not to proceed with it just days before Russia sent its troops into Ukraine on Feb. 24.

Russian President Vladimir Putin speaks during a news conference following the Shanghai Cooperation Organization (SCO) summit in Samarkand, Uzbekistan September 16, 2022. Sputnik/Sergey Bobylev/Pool via REUTERS

European gas prices more than doubled from the start of the year amid a decline in Russian supplies.

This year’s price surge has squeezed struggling already consumers and forced some industries to halt production.

Europe has accused Russia of weaponising energy supplies in retaliation for Western sanctions imposed on Moscow over its invasion of Ukraine. Russia says the West has launched an economic war and sanctions have hampered Nord Stream 1 pipeline operations.

Russia has cut off gas supplies to several countries, includingBulgaria and Poland, because they refused to pay in roubles rather than the currency of the contract.

Russian gas giant Gazprom (GAZP.MM) also said earlier this month the Nord Stream 1 pipeline, Europe’s major supply route, would remain shut as a turbine at a compressor station had an engine oil leak, sending wholesale gas prices soaring. read more

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Reporting by Reuters; Editing by Kevin Liffey/Guy Faulconbridge

Our Standards: The Thomson Reuters Trust Principles.

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