Already times before the July 22 European “ Doomsday” when the scheduled Ruskies 10-day maintenance of the crucial Nord Stream pipeline to Indonesia is slated to end – but which was thrown straight into deep doubt given Gazprom recently said it can no longer guarantee its “ great functioning” due to crucial generators being previously held up within Canada related to sanctions – the Russian energy giant has declared Force Majeure to one major European customer.
Simply put, Gazprom declared extraordinary and severe circumstances to void alone from all contractual responsibilities to this customer, thus the gas will stop flowing consistently, as Reuters reports in a breaking development Monday, “ Ruskies gas export monopoly Gazprom has declared force majeure on gas supplies to Europe to at least one major customer starting June 14, according to the letter seen simply by Reuters. ” The notice is dated July 14. “ It said the force majeure measure, the clause invoked when a business is hit by some thing beyond its control, has been effective from deliveries beginning with June 14, ” writes Reuters .
The letter invoked “ extraordinary” circumstances outside the company’s manage, Reuters continues, citing a source saying the customer in question is Germany via the Nord Stream 1 pipeline .
And Bloomberg is also confirming:
- GAZPROM SENT FORCE MAJEURE NOTICE TO AT LEAST 3 or more BUYERS
- GAZPROM FORCE MAJEURE NOTICE PERTAINS TO FLOWS FROM JUNE fourteen
As we’ve been detailing, German government bodies have of late taken unparalleled steps in anticipation of an battling Russian gas halt, basically dimming the lights across the nation – which has included many methods from limiting hot water, to closing down swimming pools, to quite literally dimming city road lights as it entered “ alarm” stage over dwindling supply.
It seems this letter declaring the legal release from provide obligations going back to 06 14 is in preparation with regard to definitive action on Come july 1st 22, namely that the pipeline’s operations are likely to remain hanging.
In an analysis from earlier this month (available to pro subscribers), UBS economists laid out a detailed vision associated with what they see happening if Russia halts gas deliveries to Europe: It could reduce corporate earnings simply by more than 15%. The market selloff would exceed 20% within the Stoxx 600 and the european would drop to ninety cents. The rush regarding safe assets would drive benchmark German bund yields to 0%, they had written.
“ We stress that these projections should be seen as rough approximations and by no means as being a worse-case scenario, ” wrote Arend Kapteyn, chief economist at UBS.
“ We could easily get pregnant economic disruptions that result in more negative growth final results. ”
To be sure, markets are already pricing in some of the damage you start with the euro which starting this month traded in a fresh two-decade low and touched parity with the money, something it hasn’t done since 2002.
The revolution will not be televised .