Russia's state energy giant Gazprom (GAZP.MM) on Monday announced that it is cutting the gas supply via the major pipeline to Europe to 20% of capacity due to equipment repairs, triggering fresh fears of the energy crisis across the EU member states that are heavily rely on Moscow for its energy needs. The move is being denounced as "political leverage" as Russian troops continue to launch an offensive in Ukraine just as Europe braces for harsh winters. The Russian state-owned company tweeted on Aug 19 that it is slashing the gas supply throughput of the Nord Stream 1 pipeline that runs under the Baltic Sea to Germany to 33 million cubic meters for at least three days—from August 31 to September 2. 

Gazprom cited maintenance work at Europe's largest gas pipeline such as the turbine repairs as the cause for the sudden reduction. 

"On August 31, 2022, the only working Trent 60 gas compressor unit will be shut down for three days for maintenance and scheduled preventive work. A set of routine maintenance in accordance with the current maintenance contract will be carried out jointly with Siemens specialists," Russia's state energy giant Gazprom (GAZP.MM) said in a statement. 

Head of Germany's network regulator, Klaus Mueller, also confirmed that the gas flow to Europe via the Nord Stream 1 pipeline will be cut in half as it would require closing down a turbine. The supply of Russian gas to Europe has been 20% of its maximum capacity since July 27 due to the shutdown of two gas turbines, the energy firm stated. Another gas turbine engine was also shut down at the Portovaya compressor station in July and only one turbine was operational. 

Since the announcement, the price of gas in Europe on the London ICE Exchange jumped by more than 5% exceeding $2,700 per 1,000 cubic meters for the first time since March. Russia supplies a third of Germany's gas needs. Germany's Ministry of Economics and Climate Protection had earlier claimed that there was "no technical reason" for  Russia to slash gas supply through Nord Stream 1 as the sanctions approval required for the delivery of the replacement turbine had been granted.

The German minister iterated that the exemption was already given by the Canadian government and no further approvals were needed in the sanctions imposed by the European Union. Citing the EU-led sanctions against Russian firms, the manufacturer had initially refused to return the repaired turbine to Germany but had agreed to do so at the request of Berlin. With more reductions in the gas supply over technical issues, Germany now believes that it can no longer rely on Russian deliveries.