It is official: The Nord Stream 1 (NS1) natural gas pipeline running from Russia to Germany is now fully offline. And European natural gas prices are, as you probably already figured out, skyrocketing.
A brand-new "oil leak" supposedly prompted Russia to halt all gas flows through NS1 after earlier stating that the pipeline would still run at 20 percent following the return of a flow turbine that was being repaired in Canada.
As fall quickly approaches, the Russian government released a photo – see below – showing a small puddle of oil on a mechanism with wires coming out of it. This, we are told, is the reason why no more gas is being sent from Russia to Europe.
Gazprom has released a photo of the alleged “oil leak” that’s going to keep the Nord Stream 1 gas pipeline closed for now. pic.twitter.com/91jH8P9qLi
— Javier Blas (@JavierBlas) September 2, 2022
After peaking in late August and plunging back to late July numbers, the natural gas price is once again spiking upwards on the European markets – and will likely continue spiking as countries scramble to figure out how they are going to create heat this winter.
Sweden and other European countries take drastic measures to avoid a "Lehman-style" financial collapse
The energy markets, in case you were unaware, are heavily leveraged to the point that this energy disruption comes with catastrophic potential. As prices soar, European nations are having to make tough decisions about what to do to minimize the blow.
Sweden and Finland have basically decided to bail out struggling utility companies that are drowning in unsustainable collateral requirements. Without these bailouts, we are told, entire nations face a "Lehman-style" bust, referring to the Lehman Brothers bankruptcy of 2008.
At the end of the week, energy ministers from across the bloc are scheduled to convene to discuss prices caps and even the suspension of energy derivatives trading.
Meanwhile, energy prices are rising so fast that hyperinflation is the only logical next domino to fall. If that happens, it is game over for Europe and any other country with exposure to its toxic financials.
Energy poverty is a very real possibility for millions of people across Europe and around the world. This is why tens of thousands of protesters converged on Prague over the weekend to demand that the Czech Republic and other nations stop sanctioning Russia over its "special operation" in Ukraine.
"Obviously, life is getting worse for people, businessmen, and companies in Europe," announced Dmitry Peskov, the official spokesman for Russian Pres. Vladimir Putin. "Of course, ordinary people in these countries will have more and more questions for their leaders."
In other words, Russia will not be sending any more gas to countries that are sanctioning it. If and when those sanctions are lifted, cheap and abundant gas will once again flow – but it will be up to the citizens of countries on the bad end of this trade to hold their leaders accountable by demanding swift action.
At the current time, according to Dmitry Medvedev, deputy chair of Russia's security council, Berlin is "acting as an enemy of Russia," and is thus being cut off from fuel.
"They have declared hybrid war against Russia," Medvedev added. "This old man acts surprised that the Germans have some little problems with gas."
The European Union (EU) has reportedly been trying in fervor to stockpile as much natural gas as it can before winter arrives, but there is almost no chance that it will procure enough to last throughout the cold season.
Is Europe and Western civilization as we know it on its last legs? Find out more at Collapse.news.
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