With the euro falling near a 20-year low today, Russian energy giant Gazprom announced it would suspend gas supplies to Europe via the Nord Stream 1 pipeline for an indefinite period. This has raised fears that energy shortages in Europe and rising energy prices will impact economic growth.
The euro fell to $0.9903, its lowest level in nearly 20 years.
Last Friday, Gazprom announced an indefinite suspension of gas deliveries to Europe via the Nord Stream 1 pipeline. According to the company, an oil leak was discovered at the main turbine of the Portovaya compressor station near St. Petersburg. The company said that the turbines could not be operated safely without repairing the oil leak.
Gazprom was scheduled to open the Nord Stream 1 pipeline on September 3, after completing maintenance work from August 31 to September 2.
The announcement of the indefinite shutdown of the Nord Stream 1 pipeline follows fears previously expressed by many that Gazprom will continue to shut down the pipeline.