Gas pipelines were once safe infrastructural investments. That was before Russia invaded Ukraine, throwing the future of Nord Stream 1 into doubt. German utility Eon has written down the value of its indirect 15.5 per cent stake by three-fifths. That implies a €4.5bn plunge in the value of the whole asset to €3.2bn.
The move means odds are lengthening against a return to Europe’s prewar reliance on Russian energy. Just as well. Russia has been trying to blackmail the west using the pipeline, which is controlled by Gazprom. It should only get one chance to do that.
Russian gas and crude oil pipelines have been Europe’s energy lifeline. Supply squeezes are now testing European political relations. The southern branch of the Druzhba oil transport system, which passes through Ukraine, recently stopped pumping. Russia refuses to pay transit fees. That causes serious problems for Hungary. National oil company MOL has decided to pay Ukraine on behalf of Russia.