Analysts with Fitch Ratings Inc. now assume the European Union (EU) will not receive any Russian pipeline gas until the end of the year, making an already tight supply situation even tighter.
The credit rating firm updated its guidance after comments from Russia’s President Putin and other officials indicated that western flows on the Nord Stream 1 (NS1) pipeline would be halted until allies of Ukraine loosened sanctions.
“Those with a high dependency on NS1 supplies and low immediate options to diversify gas sources, like Germany, have limited room for maneuver,” analysts wrote.
The pipeline system that previously provided around 25% of the EU’s yearly Russian gas imports shut down on Aug. 31 for planned maintenance until Sept. 2. That outage period has now been...