Russian state energy giant Gazprom has declared force majeure on some of its gas supplies to Europe as Putin took a step closer to turning off the taps completely.
A letter from Gazprom, seen by Reuters, argues that the company cannot fulfil its supply obligations because of “extraordinary” circumstances.
It said the force majeure clause, which is used to shield a business from factors beyond its control, was retroactively effective for deliveries starting from June 14.
The letter is said to refer to supplies through the Nord Stream pipeline to Germany, which is currently shut for planned maintenance.
The move will fuel fears of a total cut-off in Russian gas supplies. Countries across Europe are racing to refill storage sites ahead of winter amid concerns shortages will lead to rationing and blackouts.
FTSE 100 closes in the green
The FTSE 100 has closed in the green, lifted by commodity stocks and an upbeat global mood.
The index ended 0.9pc higher at 7,223 after rising as much as 1.5pc.
European markets trimmed some early gains after Russia's Gazprom declared force majeure on gas supplies to Europe to at least one major customer.
"What we're seeing is just the spillover effect from the Friday rebound," said Michael Hewson at CMC Markets UK.
"We still have to be cautious about it because there are a lot of moving parts as can be seen from the story of Gazprom calling force majeure."
05:42 PM
Hundreds of millions of pounds needed to meet UK heat pump targets, warns National Grid
Plans to install millions of heat pumps to replace gas boilers are “insufficient” and risk missing the Government’s net zero targets, National Grid has warned. Matthew Field reports:
The UK is currently installing just 60,000 pumps per year, 90pc less than the Government’s target of installing 600,000 heat pumps annually by 2028, National Grid’s electricity system operator (ESO) said.
Meanwhile, it warned that government subsidies of £450m will only support 90,000 installations which could lead to a shortfall in heat pumps that risks slowing the UK’s efforts to cut carbon emissions.
Heat pumps take warm air from outside of a home and pump it inside, cutting out the need for a gas-powered heating boiler.
05:12 PM
Microsoft president says labour squeeze caused by plummeting population growth
US companies are facing a "new era" in which fewer people are entering the workforce and pressure to pay higher salaries may become permanent, Microsoft's president Brad Smith told Reuters in an interview.
Smith said that plummeting population growth in the US, Europe, China and Japan has contributed to today's "greater economic turbulence".
The US working age population had been expanding by five million people every five years since 1950, but between 2016 and 2020 the number was two million people, and this trend is slowing further.
Smith said: "That helps explain part of why you can have low growth and a labor shortage at the height at the same time. There just aren't as many people entering the workforce."
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