Gazprom fully halts gas supplies to Nord Stream 1, citing a leak
From CNN’s Uliana Pavlova
The corporate headquarters of Gazprom Germania, the German unit of Russian natural gas company Gazprom, stands on March 30 in Berlin, Germany. (Sean Gallup/Getty Images/File)
Russian gas giant Gazprom is completely halting gas supplies to Nord Stream 1 and is citing an oil leak, Gazprom said in a statement on Friday.
Nord Stream 1 — the biggest pipeline bringing Russian natural gas supplies to Europe via Germany — was on a planned 72-hour shutdown for maintenance work and was due to resume gas flows tomorrow (Saturday).
However, with this latest statement, Gazprom said the pipeline supply would be "completely stopped" until the the issues with equipment operations are resolved, giving no clear timeline for when the flow would resume.
During maintenance work at its Portovaya compressor station, Gazprom detected an oil leak, it said in the statement, adding that the Russian state watchdog issued a warning to the company and that it has also sent a letter to Siemens about the need to repair the turbine.
CNN is reaching out to Germany’s Energy department for comment.
1:23 p.m. ET, September 2, 2022
Ukraine sanctions Putin's daughters
From CNN's Yulia Kesaieva
Putin's daughters; Katerina Tikhonova, left and Mariya Putina, right (Pool/Russia 1)
Russian President Vladimir Putin's daughters have topped the new Ukraine sanctions list.
According to Ukraine's Ministry of Reintegration of Temporarily Occupied Territories, the government approved a list including 99 individuals and 178 legal entities.
Putin's adult daughters Katerina Tikhonova and Maria Vorontsova were among those named, plus the Russian Federation of Industrial Companies and officials of the national banks of Russia and Belarus.
Earlier this year, the US applied sanctions against the people and entities listed by Ukraine. Ukraine noted that from now on, it will be matching those who are also sanctioned by partner countries.
12:09 p.m. ET, September 2, 2022
Russia has suffered significant losses in south, Ukrainian military claims
From CNN's Julia Kesaieva
In its latest operational update, the Ukrainian military says it has destroyed a ferry crossing that Russian forces used across the river Dnipro in the country's south.
Missile and artillery units "delivered effective strikes on the ferry crossing near the village of Lvove village [Beryslav district] and on two areas where the enemy's forces were concentrated," the military's Operational Command South said.
Another Russian ammunition depot had been destroyed in the Beryslav district of Kherson and a Russian Su-25 combat aircraft had been downed in the the same area, it added.
CNN is unable independently to verify the Ukrainian claims.
10:43 a.m. ET, September 2, 2022
Ukrainian nuclear operator says second reactor is now operating at Zaporizhzhia plant
From CNN's Olga Voitovych
Employees work at the Russian-controlled Zaporizhzhia nuclear power plant during a visit by members of the International Atomic Energy Agency (IAEA) mission on September 2. (IAEA/Reuters)
Ukrainian state nuclear operator Energoatom said a second reactor at Zaporizhzhia nuclear power plant is now up and running.
"Today, September 2, 2022, power unit No. 5 of the Zaporizhzhia NPP, which was disconnected yesterday morning (September 1) as a result of mortar shelling by the Russian occupying forces at the ZNPP site, was connected to the power grid at 1:10 p.m., and power set continues," Energoatom said Friday on Telegram.
"As of now, two power units are operating at the station, producing electricity for Ukraine's needs," it added.
Both Ukraine and Russia have persistently blamed each other for shelling the site and surrounding areas. CNN is unable to verify what strikes occurred or who was responsible.
Representatives of the International Atomic Energy Agency mission continue their work at the plant, Energoatom said.
10:00 a.m. ET, September 2, 2022
Officials from multiple countries are part of IAEA mission at Ukrainian plant, Russian nuclear operator says
From CNN's Uliana Pavlova
International Atomic Energy Agency officials from Spain, Jordan, Albania, Lithuania and Romania are currently working at the Zaporizhzhia nuclear power plant, according to a representative of the Russian nuclear operator Rosenergoatom.
The unnamed Rosenergoatom representative was quoted by Russian state news agency RIA Novosti.
A team of five inspectors from the United Nations' nuclear watchdog remains at the site, with IAEA chief Rafael Grossi pledging that the IAEA is "not going anywhere" and will have a "continued presence" at the plant.
Rosenergoatom is the Russian nuclear power station operations subsidiary of Atomenergoprom.
9:30 a.m. ET, September 2, 2022
Finance ministers from G7 nations plan to implement a price cap on Russian oil and petrol products
From CNN's Chris Liakos
Oil storage tanks stand at the RN-Tuapsinsky refinery, operated by Rosneft Oil Co., as tankers sail beyond in Tuapse, Russia, on March 23, 2020. (Andrey Rudakov/Bloomberg/Getty Images)
Finance ministers from the G7 nations released a joint statement announcing that they have agreed to implement a price cap on Russian oil and petroleum products in order to “reduce Russian revenues and Russia's ability to fund its war of aggression.”
“Today we confirm our joint political intention to finalise and implement a comprehensive prohibition of services which enable maritime transportation of Russian-origin crude oil and petroleum products globally – the provision of such services would only be allowed if the oil and petroleum products are purchased at or below a price (“the price cap”) determined by the broad coalition of countries adhering to and implementing the price cap,” the statement reads.
The price cap's goal is to reduce Russian revenues, weaken the country's ability to fund its war and Ukraine and also ease the impact of the war on global energy prices, the statement said.
The measure builds on existing sanctions, particularly those in the sixth EU package, it added.
Ministers said they commit “to urgently work" on the finalizing and implementing the price cap.
Ahead of this G7 meeting, Russia's Deputy Prime Minister Alexander Novak said Moscow would no longer supply oil and petroleum products to countries that choose to implement such restrictions.
"If they impose restrictions on prices, we will simply not supply oil and petroleum products to such companies or states that impose restrictions as we will not work non-competitively," Novak said previously, according to Russian state news agency TASS.
8:45 a.m. ET, September 2, 2022
Norwegian energy firm completes exit from Russia
From CNN's Robert North
An aerial view taken on February 16, shows the headquarters of Equinor in Fornebu, Baerum, Norway. (Håkon Mosvold Larsen/NTB/AFP/Getty Images)
Norwegian energy company Equinor says it has fully completed its withdrawal from Russia.
In May, Equinor announced its plans to pull out of four joint ventures with Russian oil firm Rosneft and leave an oilfield, the Kharyaga project.
That exit has been completed and there are “no remaining assets or projects in Russia," Equinor said.
It’s the first major Western oil firm to fully withdraw from Russia, according to Reuters.
Other big firms like ExxonMobil, BP, Shell and French firm TotalEnergies have all committed to withdrawing from the country or stopping investments, but they are still in the process of completing exits.
In May, Shell announced the sale of its Russian lubricant and retail energy business, but said it was still in the process of phasing out its other Russian businesses.
In February, BP said it would exit its 19.75% stake in Rosneft but said that sanctions and Russian rules meant that it had not been able to sell its shares yet.
TotalEnergies has sold some of its Russian oilfields but says the deals would not complete until later in September.
ExxonMobil has also outlined plans to exit its operations at the Sakhalin-1 energy project, and said it would no longer invest in new developments in Russia.
8:42 a.m. ET, September 2, 2022
One reactor at Zaporizhzhia plant still functioning, says pro-Russian official
From CNN's Anna Chernova and Olga Voitovych
A motorcade transporting the International Atomic Energy Agency (IAEA) expert mission arrives at the Zaporizhzhia Nuclear Power Plant, Ukraine, on September 1. (Alexander Ermochenko/Reuters)
One out of the six nuclear reactors at the Zaporizhzhia power plant is operational, the head of the Russian-backed administration in occupied parts of Zaporizhzhia said.
"One power unit remains in operation on Friday at the Zaporizhzhia nuclear power plant, delivering 60% of its capacity," said Yevgeny Balitsky, according to the Russian state news agency RIA Novosti.
Until recently, two reactors were providing power.
Balitsky said his administration had shown details of alleged Ukrainian shelling in the area to the UN nuclear inspectors that visited the plant Thursday .
The team from the International Atomic Energy Agency (IAEA) "recorded all the objects we showed. ... They said ‘we don’t give assessments of the military situation.’ … They recorded the incoming shells, they are in the protocols, the hits, we showed them everything," he said, adding that the Russian-backed authorities were interested in the IAEA's official view on the operation of the plant and the shelling.
This comes as Ukrainian and Russian agencies continue to accuse each other of trying to subvert the mission of the IAEA to safeguard the Zaporizhzhia nuclear power plant.
Ukraine accused the Russians of trying to prevent the IAEA mission from getting to know the facts on the ground, which it said will make it difficult for the agency to "make an impartial assessment."
"The Russian military lies, manipulates and misrepresents reality at Zaporizhzhia NPP by disseminating only information on the IAEA mission visit it could benefit from," The Ukrainian nuclear power provider, Energoatom, said Friday.
On the other hand, pro-Russian officials in the occupied area are blaming the Ukrainians for impeding the IAEA's work. An official said that Ukraine "did not stop" shelling "but their intensity significantly decreased" during the visit.
7:13 a.m. ET, September 2, 2022
If G7 price cap on Russian oil materializes, oil markets will destabilize, Kremlin says
From CNN’s Anna Chernova
If G7 leaders decide to impose price caps on Russian oil, it will lead to a significant destabilization of oil markets, Kremlin spokesperson Dmitry Peskov said Friday.
“One thing we can say with certainty: making such a decision will lead to a significant destabilization of oil markets,” Peskov told CNN on a conference call when asked if a potential price cap will hurt Russia financially.
On Friday, G7 finance ministers are expected to meet to discuss setting a price cap on Russian oil. The Biden administration has been pushing for governments to introduce a price cap.
“This is the most effective way, we believe, to hit hard at Putin's revenue, and doing so will result in not only a drop in Putin's oil revenue, but also global energy prices as well,” White House Press Secretary Karine Jean-Pierre said earlier this week.
The British finance minister, Nadeem Zahawi, said Thursday he was hopeful that G7 ministers would strike a deal.
Russian Deputy Prime Minister Alexander Novak told reporters Thursday that, should such restrictions be imposed, Russia will suspend oil and petroleum supplies to states which limit the price of its oil.
Peskov confirmed Novak’s statement Friday saying that Russia will not have oil trade with countries that will join these restrictions.
“Those countries that join the potential price ceiling will not be among the recipients of Russian oil,” he said adding that the Russian oil will go to “alternative directions” instead.
Peskov refused to name the alternative oil partners Russia is planning to trade with, but said “they are more numerous than before.”
