Vladimir Putin has vehemently denied Russia is limiting fuel provides to Europe to drive up costs however provided no indication that there can be swift motion to alleviate rigidity in unstable power markets.

The Russian president instructed a convention in Moscow on Wednesday that accusations of state-owned Gazprom utilizing power as a “weapon” to hurry up approval of the lately constructed Nord Stream 2 pipeline to Germany have been “politically motivated blather”.

Putin stated Russia was assembly all requests for fuel provides from Europe, including that Gazprom had already exceeded its contractual obligations to prospects within the bloc. However he careworn that additional provides trusted requests from the EU — who, he implied, must purchase fuel on Russia’s phrases.

“We’re growing [supply] as a lot as our companions ask. There hasn’t been a single refusal. Not one,” Putin stated.

Analysts and merchants say, nonetheless, that there have been no indicators of further fuel provides since Putin’s hints last week that Russia might enhance exports to assist calm costs, which have soared to greater than 5 occasions the extent of a yr in the past.

Putin reiterated feedback made steadily by Kremlin officers that European prospects would wish to signal long-term contracts — which are sometimes for 20 years or extra — to safe further fuel provides from Russia, quite than through the spot market as favoured by the EU.

He stated he can be pleased to debate “further actions” with the EU with out offering specifics.

“If anybody was anticipating there to be some dramatic announcement about them auctioning further volumes of fuel for Europe within the brief time period, they’ll have been dissatisfied,” stated Laurent Ruseckas at IHS Markit, a consultancy.

“That’s what the market was listening for and it wasn’t forthcoming, past the feedback we’ve heard earlier than . . . however what Putin did reiterate is that after NS2 is working that may be constructive for provide.”

Putin helped mood surging fuel value rises final week by saying Russia was ready to intervene to stabilise a “speculative craze” on unstable power markets.

Putin argued that Gazprom had already reached capability for sending exports underneath present routes, saying the approval of Nord Stream 2, which bypasses Ukraine to provide fuel to Germany, would assist “considerably relieve tensions on the power market” if it have been accepted by German regulators.

Kadri Simson, EU power commissioner, stated the fee was “taking a look at all points round manipulation and anti-competitive exercise together with issues round Gazprom”.

“Our preliminary evaluation is Gazprom is fulfilling its contracts whereas offering no further provide,” stated Simson.

The Worldwide Power Company, which is primarily funded by OECD members, has stated it believes Russia might enhance exports to Europe by 15 per cent and has referred to as on Moscow to exhibit that it’s a “dependable provider”.

Russia’s deputy power minister Evgeny Grabchak instructed reporters on Wednesday that Gazprom would proceed filling home storage amenities till November 1, an indication that Russia was in no rush to divert provides to Europe.

European fuel costs have eased barely since Putin’s feedback final week, however are nonetheless properly above earlier years. The benchmark contract for November supply was buying and selling above €90 per megawatt hour on Tuesday, greater than 5.5 occasions the extent of a yr in the past.

Putin additionally stated Russia was concentrating on attaining carbon neutrality by 2060, underlining the Kremlin’s rising appreciation of the menace from local weather change. Russia’s Arctic area is warming thrice sooner than the worldwide common.

However Putin additionally stated that pure fuel, in addition to hydrogen and ammonia, would play a higher function within the power combine, implying that Russia would proceed to take advantage of its big pure useful resource base.