US warns Putin that weaponsing gas supplies will 'backfire'

The US has warned Russia not to use Europe's gas crisis as a 'political weapon' after Vladimir Putin was accused of choking supplies to pressure leaders into granting approval for his Nord Stream 2 pipeline.

Jake Sullivan, Joe Biden's national security adviser, issued the warning after meeting with European leaders in Brussels where they discussed - among other things - the soaring price of gas as economies restart post-Covid.

He said that Russia 'has a history of using energy as a tool of coercion' and the US has a 'real concern' that supply is not keeping pace with demand, driving prices up amid warnings of energy shortages and blackouts.

Mr Sullivan issued a veiled threat to the Kremlin, saying that meddling with supplies would ultimately 'backfire' by accelerating moves towards renewables and alternative energy sources.

Russia has denied using underhanded tactics, saying that all gas contracts are being fulfilled and that the fault lies with leaders who are relying on the short-term 'spot market' to top up supplies which are under pressure because of a sudden spike in demand as economies reopen.

But leaders of Russia's energy sector were quick to link the easing of supply issues with approval of Nord Stream 2, leading many to conclude that the gas crisis is being used as a political bargaining chip.

Experts argue that Russia currently has four major gas pipelines running into Europe and has the capacity to increase supplies without the need to activate NS2. 

Caught in the midst of the political wrangling are households who will face soaring costs, with those in the UK warned that bills could hit £2,000-a-year in 2022 for the first time when the annual price cap in revised.

At the same time, the crisis is threatening to push up the price of ordinary goods.

Manufacturing leaders warned that they could be forced to raise the cost of everything from bricks and chemicals to food and toilet rolls.

It comes as Putin was accused of holding Europe to ransom, with experts saying the Russian president has substantial scope to boost gas supplies to the West – but he was using the issue as leverage.

Stephen Pifer, an affiliate of Stanford's Center for International Security and Cooperation, said: 'Let's be clear: Russia has lots of unused pipeline capacity to Europe. Moscow is not exporting more gas for some other reason.'

The multi-billion dollar NS2 pipeline, which was completed earlier this year, would be used to bring gas into Europe while bypassing Ukraine and Poland, depriving both countries of large amounts of money they currently make for maintaining pipelines that run through their territory.

The move is seen as a 'punishment' for their leaders for pulling away from Russia's sphere of influence and allying more closely with the West, and both countries are strongly opposed to it.

America is also strongly opposed - arguing that it will make Europe, which currently depends on Russia for some 40 per cent of its gas, even more reliant while handing the Kremlin leverage over European politics.  

Moscow has been pushing hard in recent months for Europe to green-light the pipeline so the taps can be opened, and has leaned on outgoing German Chancellor Angela Merkel to get a deal signed. 

Germany is reliant on fossil fuels for around 75 per cent of its energy - having mothballed its nuclear programme in the wake of the Fukushima meltdown - and Merkel has consistently supported the project. 

Aleksandr Novak, Russia's energy minister, said during a call with Putin on Wednesday that granting approval for Nord Stream 2 'as fast as possible' would give 'a positive signal' and allow the current gas crisis to 'cool down'.

Sergei Pikin, a Russian energy analyst, was even more blunt in his assessment. Speaking to the New York Times, he said: 'Do we have an obligation to deliver additional new volumes of gas? No.