European Union (EU) commissioner for budget and administration Johannes Hahn said on Tuesday, the European Commission doesn't expect gas supplies to Europe from Russia through the Nord Stream pipeline to restart from this Thursday, according to the Wall Street Journal (WSJ).
Hahn said: "We're working on the assumption that it doesn't return to operation.”
The reopening of Russia’s Nord Stream 1 pipeline is critical for the euro to sustain its recovery momentum. The Nord Stream 1 pipeline, Germany’s main source of Russian gas, is scheduled to be out of action until July 21 for routine work that the operator says includes “testing of mechanical elements and automation systems”.
But markets remain suspicious about Russia’s intentions, particularly after Russia’s Gazprom last month reduced the gas flow through Nord Stream 1 by 60%.
Should Russia delay the pipeline reopening, in response to the Ukraine crisis, it could escalate the dire gas situation in Europe, reviving the bearish interest in the shared currency.
At the time of writing, EURUSD price is trading 0.90% higher on the day at 1.0232, having hit two-week highs of 1.0253 on talks of a larger ECB rate hike this week.
